Issue #289
July 2013
Lady Chatterley’s house: Literary connections sell U.K. homes Canada Post Publications Mail Agreement No. 42218523 - Return undeliverable Canadian addresses to 2255B Queen St. E., #1178, Toronto ON M4E 1G3
Page 3
Real estate designations Are they worth it? Page 8
Commission agreement basics Page 28
Bob Pedler A 44-year career as an independent broker in the City of Roses Page 16
To join an outstanding organization with outstanding agents, talk to your local RE/MAX Broker Owner or visit
joinremax.ca
REM JULY 2013 3
Literary connections sell U.K. homes
The Nottinghamshire manor house that was the inspiration for Wragby Hall in D.H. Lawrence’s steamy (and once banned) novel Lady Chatterley’s Lover should not take too long to sell. By Nigel Burnham
W
hen you’re selling your house in a time of severe economic recession it helps to have a selling point – and there are few better selling points in the U.K. than owning a house with a literary connection. Literary heritage is big business here. A record 19 million visitors toured National Trust houses last year, including several associated with Britain’s most celebrated writers. At one time, more than 100,000 Beatrix Potter aficionados flocked to her Cumbrian cottage, Hill Top, each year, while Thomas Carlyle’s town house in Chelsea, London, and Red House, William Morris’ Arts and Crafts residence in Kent, are also very popular visitor attractions. For years, fans turned up at Green Hedges, Enid Blyton’s now demolished home in Beaconsfield, Buckinghamshire, and today visitors drop in to the genteel house in Chawton, Hampshire, to see where Jane Austen wrote Pride And Prejudice. Wandering around the home of an author is as close as most people get – but actually residing where a playwright or novelist once put quill to parchment or fingers to battered typewriter is a literary buff’s dream come true. Although some buyers are principally concerned with price and finish, a cultural connection can make it much easier to market a property. So the Nottinghamshire manor house that was the inspiration for Wragby Hall in D.H. Lawrence’s steamy (and once banned) novel Lady Chatterley’s Lover should not take too long to sell, having just gone on the market at £1million. Officially known as Teversal
Keira Knightley in Pride and Prejudice (left). The home where the Bronte sisters were born was recently purchased by a private buyer who may turn it into a bistro (middle). Teversal Manor, referenced many times in Lady Chatterley’s Lover, is for sale (right).
Manor, the six-bedroom house is referenced many times in the 1928 novel because it’s where Constance Chatterley lives with her paralysed husband Clifford, and from which she tiptoes out at night to meet her gamekeeper lover, Oliver Mellors. “During the First World War, the house was used for the rehabilitation of soldiers,” says owner Janet Marples, 69. “They put a slope down to the second garden terrace for wheelchairs and it’s said D.H. Lawrence got the idea for Constance’s husband Clifford from that, as he is in a wheelchair too.” It isn’t just houses with literary connections that sell for inflated prices. A stretch of beach overlooking a lighthouse that inspired one of Virginia Woolf’s most famous novels recently fetched £80,000 at auction. The 76-acre Upton Towans beach in Gwithian, Cornwall – where Woolf spent many family holidays as a child – affords terrific views of the lighthouse on nearby Godrevy Island, which became the inspiration for her 1927 classic To The Lighthouse. But houses with literary connections are what have been making the serious money lately. Remember the Tale of Mr. Jeremy Fisher, the frog who fished the Dalguise Beat for his dinner?
Burnside Cottage in Perthshire, Scotland, where his creator Beatrix Potter lived for several years, is thought to have been the inspiration for this culinary tale and, for £760,000, you could recently have had this three-bed cottage and more than a mile’s worth of Mr. Jeremy’s double fishing bank. In the south of England, the passion of The Forsyte Saga materialized at Wingstone Manor Farm, where John Galsworthy lived from 1906 to 1924. His glorious five-bed house nestles in the pastures of Dartmoor national park. For £1.55 million, you could also have had two large drawing rooms, each with wood-burning stoves, a kitchen-diner, a range of outbuildings, riding land and spectacular views from the wisteria-clad veranda. Closer to London, it is easy to believe that Toad, Ratty, Mole and Badger and the rest of their Wind in the Willows chums were conjured up by Kenneth Grahame at the magnificent seven-bedroom Martens House (Toad Hall?) in Wargrave, Berkshire, an elegant yet unpretentious Elizabethan manor standing on the reaches of the Thames, on (yes, really) Willow Lane and costing a cool £2.49 million. Finally, in England’s south-west corner, the white-
washed seaside coach house in Cornwall where Daphne Du Maurier lived in the 1940s, has recently sold for £1.875 million. Situated in its own sandy cove in the harbour town of Fowey, the four-bedroom house – along with its enchanting garden and surrounding area – is thought to have inspired the setting of her novel Frenchman’s Creek. The homes where writers, playwrights or poets penned their masterpieces have an enduring fascination. Interest in houses with literary connections is now so great that some real estate agents are hiring qualified house historians. One, Melanie Backe-Hansen, specialises in researching the history of the homes of writers like P. G. Wodehouse and H. G. Wells. “Certain places are a magnet for writers,” she says. “Carlyle Mansions, on Cheyne Walk, Chelsea, is referred to as ‘the writers block’ as it’s been home to well-known figures such as Ian Fleming and T. S. Eliot. Giving a house a link with an author has obvious benefits, and adds cachet to the address.” James Bailey, of real estate firm Henry and James, says that George Orwell came to his rescue when a house he was trying to sell on a busy road was attracting little interest.
“When we discovered Orwell had lived there, suddenly buyers appeared and it sold very quickly. A literary connection doesn’t necessarily mean a higher price, but it does make it more saleable.” Sometimes a house with a literary connection can sell very quickly and at an relatively low price. In West Yorkshire, fans of the Brontes make pilgrimages to the parsonage in Haworth where the literary sisters created their brooding romantic characters playing out their tempestuous passions on bleak, windswept moors. The Bronte Birthplace Trust’s last-minute attempt to buy the nearby 1802 house where Charlotte, Branwell, Emily and Anne Bronte were born floundered in February after it had difficulty raising the money and was gazumped by a private buyer. The four-bedroom home in which the children were born and raised between 1815 and 1820 before the Brontes moved to Haworth sold for a modest £120,000. The Bronte Birthplace Trust had wanted to acquire the house and convert it into a Bronte museum, bookshop and café to help regenerate the village, just west of Bradford, but it may now become a bistro. REM
4 REM JULY 2013
Multiple Listings By Jim Adair, REM Editor Do you have news to share with Canada’s real estate community? Let REM know about it! Email: jim@remonline.com
C
anada’s newest real estate brand is Galaxy Gate, which was recently introduced in Toronto by broker, president and CEO Barry Kainth. “Real estate in Canada is changing and real estate professionals need to become more disciplined and focus on their future business plans and educational goals,” says Kainth. He says education and training will be the primary focus of Galaxy Gate, in addition to providing professional service. “We are committed to providing exceptional support to our franchisees through strong leadership, education and training for
management and sales representatives. In addition, we will also provide strong enforcement to ensure ethical, professional and reliable service is provided to all Galaxy Gate clients,” says Kainth. The brokerage recently opened its corporate office in Toronto. It’s offering 100 real estate courses free to its Realtors, and says it will update and add new courses on a regular basis. Kainth says the company plans to open franchises in all provinces, starting with B.C., Alberta and Ontario. ■ ■ ■
Brad Clayton has joined Better
Homes and Gardens Real Estate Canada (BHGREC) in the role of director of franchise development. “We were immediately impressed by Brad’s many accomplishments, which include numerous recognitions as top producer at Realogy and his proven ability to successfully navigate mergers and acquisitions and franchise development,” says Rob Vanden Broek, president of BHGREC. Clayton closed some of the largest multimillion dollar deals in Realogy history and generated $27 million (US) in sales in 2011, the company says. Clayton also has extensive experience in negotiating complex, structured M&A deals
exceeding $10 million, the company says.
vision for operating a successful real estate brokerage.”
■ ■ ■
■ ■ ■
Anne Squires, regional owner of Exit Realty in Alberta, recently sold three franchises. “We are proud to have seasoned Realtors, husband and wife team Elaine and Gary Bishop as the new owners in Fort McMurray and Wood Buffalo,” says Squires. She says their Fort McMurray office is now open. “They are a strong team that is value-driven. We know they are the ideal people to really make a difference in the community.” Existing Exit franchisees Paul and Sue Chauvet, based in Edson, have opened an office in Fox Creek. “It’s a natural for the expansion of their business for Paul and Sue to open a branch office. They are successful in their brokerage operation and are looking for new opportunities for growth,” says Squires. “Exit Realty Alberta has been busy interviewing candidates for brokerage ownership across the province with a strong focus on Calgary,” says Bruce Mullett, manager of franchise development for the region. “We are very impressed with the calibre of real estate professionals in the Alberta marketplace and their openness to a new
Frank Binder, broker of record of Royal LePage Binder Real Estate in Windsor, Ont. and Prudential Select Realty owners Carol Baillargeon and Terry Gouin have merged their companies. Baillargeon and Gouin’s team of 25 sales representatives and brokers add to Royal LePage Binder Real Estate’s existing team of 93. The amalgamated company services the areas of Windsor, Tecumseh, Lakeshore, Tilbury, Leamington, Kingsville, Essex, Amherstburg and LaSalle. ■ ■ ■
Maurice King, a multi-platinum award winner and Re/Max Hall of Fame member, has joined Re/Max First at the Brooklin, Ont. office, reports broker/manager Paul Etherington. “Maurice has been a top-producing salesperson in the Whitby/Brooklin area for the last 10 years and we are thrilled to have him re-join Re/Max,” says Etherington. Re/Max First Realty opened in Pickering in 1992 and now has three offices and 160 salespeople serving all of Durham Region. ■ ■ ■
Barry Kainth
Paul Chauvet
After nearly 20 years serving Lindsay and The City of Kawartha Lakes, Coldwell Banker has put down permanent roots in the Town of Lindsay. In February, Coldwell Banker R.M.R. Real Estate purchased 130 William St., the former head office of The John Carew Lumber Company, which began operations in Lindsay in 1891.
Frank Binder
Maurice King
Brad Clayton
Sue Berube-Chauvet
Carol Baillargeon
Elaine Bishop
Gary Bishop
Terry Gouin
Continued on page 6
Coldwell Banker R.M.R. real estate has opened its Lindsay office in the historic former head office of The John Carew Lumber Company.
THE
of home searches happen on mobile devices (Source: NAR & Google-2012)
THE
Mobile devices are part of our daily lives. At CENTURY 21 Canada we capitalize on this fact to benefit the bottom-line of our sales representatives. We provide: ü Immediate SMS leads directly from our agent websites ü Personalized, responsive websites that automatically change to a mobile version when viewed on a mobile device
Our sales representatives are the proof that our approach works: THE
Result
JOIN US TODAY!
“After researching all the brands, I joined CENTURY 21 because it has technology that is powerful and extremely useful in my sales process.”
1.855.228.7338 Century21franchise.ca Century21careers.ca
KaraLee Foat CENTURY 21 SUMMIT REALTY
SMARTER. BOLDER. FASTER.
TM
facebook.com/ CENTURY21Canada
twitter.com/ CENTURY21Canada
youtube.com/user/ CENTURY21Canada
Independently Owned and Operated. ®/™ trademarks owned by Century 21 Real Estate LLC used under license or authorized sub-license. © 2013 Century 21 Canada Limited Partnership ®™ Trademarks of AIR MILES International Trading B.V. Used under license by LoyaltyOne, Inc. and Century 21 Canada Limited Partnership.
6 REM JULY 2013
Continued from page 4
John Carew was a prominent member of the community having served as a member of the Lindsay Board of Trade and Board of Education and was president of Lindsay Central Fair 1910 – 1915. He was elected to the Ontario Legislature in 1914 and served as the Conservative member for the riding of Victoria South until 1919. F.J. Carew (born 1888), son of John Carew, became managing director of the family business and served overseas from 1916 to 1918 as lieutenant colonel with the Canadian Forestry Corps in France and in July 1917 was appointed the commanding officer of the #1 Military District in France. He served as mayor of the Town of Lindsay in 1922 and was governor for the Ross Memorial Hospital, served on the Board of Education and was president of the Lindsay Central Exhibition. One of F.J. Carew’s daughters, Gertrude, married Leslie Frost who became premier of Ontario from 1949 to 1961. Coldwell Banker RMR Real Estate was established by its founder and current president, Ralph M. Roberto in 1976 and operates seven additional locations including Oshawa, Whitby, Port Perry, Uxbridge, Brooklin, Bobcaygeon and Cobourg, Ont. ■ ■ ■
Christian Ouellette, owner of the brokerage formerly operating as Groupe immobilier Phénix, has joined the Royal LePage franchise network. The company will operate as Royal LePage Optimum. Ouellette has served as a member of several boards, including president of his local business association and Chamber of Commerce. “His professionalism and good humour will create a positive atmosphere for his team, who
Cover photo: HANAKAEYE PHOTOGRAPHY
will now work in a newly refurbished and well-located office,” says Royal LePage in a news release. The Royal LePage Optimum team services the South Shore areas in the cities of Delson, St-Constant, Ste-Catherine, Candiac, Laprairie, St-Mathieu StPhilippe St-Rémi and St-Michel. The brokerage, which owns nearly five per cent market share, plans to expand its team in the coming months. ■ ■ ■
Re/Max of Western Canada, in association with The Brick, BigSteelBox, General Paint and the Western Hockey League recently held a promotion called the Re/Max Home Team Contest. Western Hockey League fans were encouraged to visit the Re/Max Home Team Contest website and perform fun challenges for the chance to win weekly and grand prizes worth a total of $25,000. The contest received more than 138,000 entries. Brian Sikstrom of Camrose, Alta. was awarded the $13,000 first prize package of $5,000 from Re/Max, $2,500 from BigSteelBox, $5,000 in gift cards from The Brick and $500 in gift cards from General Paint. Elizabeth Peterson of High Prairie, Alta. and Janice Haslam of Comox, B.C. were the runner-up prize winners, each receiving $2,500 worth of gift cards from The Brick. Three additional winners were selected each week throughout the duration of the contest to win prizes from BigSteelBox, General Paint and the Western Hockey League. ■ ■ ■
Staff from Exit Realty handed out more than 4,000 bags recently at RealtorQuest, the largest annual gathering of real estate professionals in the country. “We attend real
estate trade shows and conferences across North America, and the Toronto Real Estate Board should be proud of the incredible show they put on. It was well organized, professionally run and had a tremendous, upbeat energy,” says Joyce Paron, president for Canada for Exit Realty. ■ ■ ■
Coldwell Banker Real Estate LLC has named Sean Blankenship senior vice-president of marketing. Blankenship joins the brand with 23 years of marketing experience, most recently leading the digital strategy, development and execution for Gulf States Toyota in Houston, a leading Toyota distributor. Blankenship will report to Michael Fischer, who was promoted to chief operating officer in January 2013. Blankenship will oversee and direct the Coldwell Banker brand’s consumer marketing efforts, including advertising, online initiatives, market research, public relations, internal communications and broker engagement activities. He will also guide all aspects of the Coldwell Banker brand’s web platform, including www.coldwellbanker.com and mobile platforms, as well as marketing activities associated with Coldwell Banker Previews International, the brand’s affluent sales program. ■ ■ ■
Jones Lang LaSalle (JLL) is adding workplace sustainability expert Barbara Ciesla to its Canadian team. Based in Toronto, Ciesla will serve as senior VP of occupier strategies and solutions, advising Canadian landlords and tenants on sustainability initiatives and workplace productivity. Ciesla has 18 years of experience in creating workplace solutions that support business objectives tied to environmental and human capital goals. Her most
Publisher HEINO MOLLS email: heino@remonline.com
Editor in Chief JIM ADAIR email: jim@remonline.com
Director, Sales & Marketing DENNIS ROCK email: dennis@remonline.com
Distribution & Production MILA PURCELL distribution@remonline.com
Manager, French Edition MICHEL CHEVALIER michel@remenligne.com
Art Director LIZ MACKIN
Digital Media Manager WILLIAM MOLLS web@remonline.com
Graphic Design SHAWN KELLY Brand Design SANDRA GOODER
recent work has been focused on “working with building occupants to facilitate the adoption of behaviours that support organizational sustainability goals,” the company says. “ Ciesla will lead the deployment of JLL’s proprietary workplace strategy tool, an integrated process to help corporate tenants maximize the return on their real estate investments through sustainability, productivity and engagement,” the company says.
Christian Ouellette
■ ■ ■
A Brampton, Ont. real estate sales rep has been arrested and charged with two counts of break, enter and theft. Halton Regional Police say a man entered a home for sale on Pringle Avenue in the Town of Milton, under the guise of showing it to a potential buyer. He was observed entering and leaving the premise unaccompanied, police say. The homeowners returned to find several pieces of jewellery missing and contacted police. Investigators subsequently determined the same agent was responsible for a similar entry on McCandless Crescent on March 18, say police. They arrested the sales rep and a search of his vehicle resulted in the recovery of several pieces of stolen jewellery. Shalinder Kapoor, 38, of HomeLife/Diamonds Realty has been charged. REM
Members of Exit Realty’s corporate team took turns handing out more than 4,000 bags at the Toronto Real Estate Board’s RealtorQuest.
Sean Blankenship
2255B Queen Street East, Suite #1178 Toronto, ON M4E 1G3
Phone: 416.425.3504 www.remonline.com www.remenligne.com REM complies fully with the Canadian Real Estate Association's Rules for Trademarks (CREA Rule 16.5.3.1) REALTOR® and REALTORS® are trademarks controlled in Canada by The Canadian Real Estate Association (CREA) and identify licensed real estate practitioners who are members of CREA. MLS® and Multiple Listing Service® are trademarks owned by CREA and identify the services rendered by members of CREA. REM is published 12 times a year. It is an independently owned and operated company and is not affiliated with any real estate association, board or company. REM is distributed across Canada by leading real estate boards and by direct delivery in selected areas. For subscription information, email distribution@remonline.com. Entire contents copyright 2013 REM. All rights reserved. Reproduction in whole or in part without written permission from the publisher is prohibited. The opinions expressed in REM are not necessarily those of the publisher. ISSN 1201-1223
Barbara Ciesla
Printed by Metroland Media Group, Ltd. A certified SFI Printer
Multiple Listings
8 REM JULY 2013
Have you been designated? The letters show others that you are dedicated to the real estate industry, but is it worth the time and money to get real estate designations? By Toby Welch
M
any Realtors have a jumble of letters behind their name – it looks like someone threw a bowl of alphabet soup at them. The letters show others that they are dedicated to the real estate industry, but is it worth the time and money to get real estate designations? Barry Lebow, ASA, SRES, ABR, FRI, IFAS, Professional Land Economist and the broker of Re/Max Ultimate Realty in Toronto has 14 professional designations. “When I was a partner in a mortgage brokerage firm and my main job was to find crappy houses to renovate, I befriended James Mizzonni, a broker and eventually president of the Toronto Real Estate Board; he was a mentor to me,” says Lebow. “Jim was going to get his FRI. He wanted me to come with him to university and take the courses. I laughed – how could I, without even Grade 10, go to university? He pushed me and gave me the form and told me to fill it in and send it in. Well, they accepted me and I was in shock. I went with Jim, I loved it. I thrived and a monster was created. I became an education junkie.” Lebow continues, “That one push by Jim changed my life. Because of that, of him, of my FRI, I became a professional. I perceived myself as a professional. I love real estate. It made me what I am. I respect real estate as it is a true profession for those who chose to be professional. ” Debra Molzan, associate broker with Re/Max House of Real Estate
in the Calgary area, has been awarded the ABR, SRES and CCS designations. “Education is very important to all professions. You cannot put a price tag on it. It’s invaluable,” she says. “The general public may not know what the letters mean but colleagues in real estate do. We can be confident when doing business or referring relocating clients to Realtors who have obtained designations – you know that these Realtors have similar professional standards. The best way to keep up with industry changes is by taking courses/seminars that are available. The newsletter and updates that we receive through the official designations are also a great resource.” Laurena Matechuk, a broker with Royal LePage Vallée de l’Outaouais in Gatineau, Que., has university degrees and her ABR. “Do my clients know that I have three university degrees including a masters and specialists degrees and that I have taken every workshop and course available in the field I am now in? No. Clients want to know you are a good agent and that you can get the price they think it is worth. Is upgrading important? Very. Do people ask you what your qualifications are? No, they ask their neighbour which Realtor they should go with. Any courses or upgrading that you take will help you in your life and your real estate decisions as well as dealing with the public. More and more, responsibility in real estate deals is being downloaded on the Realtor. Today’s Realtor must be very knowledgeable.”
Real estate designations vary drastically as to how much time, effort and cost are required to acquire them. Some require intense classroom participation whereas others can be done online. Not everyone is a proponent of acquiring designations. Malcolm Johnston, a sales rep with Century 21 Lanthorn Real Estate in Trenton, Ont., says: “I think most designations are a complete waste of time, the public doesn’t really care. Agents in my area have to be prepared to sell farms, businesses, condos and family homes. In a smaller board agents generally take the listings they get. I can see that maybe in a large market having a niche specialty with a designation might be a bonus (for example, the condo guy), but I don’t see it as being beneficial at all from my perspective. If anything it will probably just amount to another organization that I will have to pay fees to and be inundated with emails from.” Shawn Lepp, a sales rep with Keller Williams Energy Real Estate in the Toronto area, does not have designations after his name but was ranked in the top 25 out of 35,000 agents in 2012 by the Toronto Real Estate Board based on volume. “Instead of a long list of designations, I have focused my career on putting the client first,” says Lepp. “Experience is the best way to handle this, but also studying and educating myself daily and keeping up with the fast-changing environment is extremely important. Knowing the market statistics and the trends so you can be more
proactive rather than reactive always helps my clients to make an educated decision. Selling or buying a home is one of the most stressful things people go through; I am prepared to assist them with knowledge, training and expertise I
Barry Lebow
Debra Molzan
Laurena Matechuk
Malcolm Johnston
have gained throughout my career.” Is acquiring a string of acronyms behind your name a waste of time or a wise investment? Only you can say what the right answer is for you. REM
What do the letters mean? Here are some common designations you’ll find behind a Realtors’ name, but it’s not a complete list of the real estate related designations available. AACI - Accredited Appraiser Canadian Institute ABR - Accredited Buyer Representative AGA - Accredited Greenagent AGB - Accredited Greenbroker AMP - Accredited Mortgage Professional ASA - Accredited Senior Agent CCS - Certified Condominium Specialist CERP - Canadian Employee Relocation Professional CLHMS - Certified Luxury Home Marketing Specialist CRA - Canadian Residential Appraiser CRES - Certified Real Estate Specialist CRF - Certified in Real Estate Finance ePro - electronics (technology) professional FRI - Fellow of the Real Estate Institute FRI (A) - Fellow of the Real Estate Institute with a specialty in residential appraisals GMS - Global Mobility Specialist RRS - Registered Relocation Specialist SRES - Seniors Real Estate Specialist
Shawn Lepp
Character and
Commitment
Your reputation is everything to you, and it means everything to us. When you refer your clients to Pillar To Post Home Inspectors, you are trusting us with your good name, and we’ll always deliver on our promise of professionalism, character, and integrity.
pillartopost.com
1-800-294-5591
Choice of exclusive Home Inspection Packages E&O insurance to protect the referring agent Report delivered on site at the time of inspection
10 REM JULY 2013
Montreal board gathers list of demands for CREA By Danny Kucharsky
T
he Greater Montreal Real Estate Board is leading an initiative among Quebec boards to present CREA with a common list of demands for changes. At stake is the future membership of the Quebec boards in the national association. If they decide to leave, the Quebec boards have until the end of September to inform CREA that their membership will not be renewed next year. “We don’t wish to leave CREA, says Patrick Juanéda, president of the Montreal board. “It’s our desire to work with everybody, but they need to respond to our needs.” Several working groups comprised of presidents and directors from the Quebec boards will come up with recommendations to present to CREA. Quebec has rules that are different than elsewhere and “we have to respond to those needs directly,” Juanéda says. For example, Quebec members are paying for WEBForms despite the fact the service can not be used in Quebec because of the province’s different regulations. The solution, he says, is more à la carte services. “If a product is worthwhile, members will use it and buy it.” He says CREA currently operates like it’s a big company and
there’s a strong need for the association to review its spending practices. “The range of services offered to members is enormously expensive and action hasn’t been taken to resolve that situation.” As an example of wasteful spending, Juanéda cites an alleged trip by a few CREA board members or members of its advertising committee to Mexico to oversee the shooting of an ad. “I find that totally ridiculous and unacceptable.” Juanéda adds that while CREA has promised improvements to Realtor.ca, Quebec’s online listing service Centris.ca has become “enormously valuable” and is responding to customers’ needs. “Centris is doing the job extremely well in Quebec and performing better than Realtor.ca. We say, ‘why not allow us to use that platform and stop spending on the other?’” There is a lot of duplication in what CREA does and adding services and stuffing them down members’ throats “is not the way to do things in 2013.” Juanéda insists that the Montreal board doesn’t want to leave CREA at any price and notes that CREA offers a common national vision and government representation required by the industry. CREA also offers services
that smaller boards can not provide to members. At its annual meeting in March, CREA approved a motion that allows Quebec members to continue to receive a dues credit for advertising for the next three years. The credit reflects the fact that Frenchlanguage TV and radio advertising promoting real estate in Quebec is no longer produced by CREA. Aside from that positive step, discussions with CREA are currently moving at a snail’s pace, Juanéda says. Still, there seems to be an openness among members of the CREA board to listen to the demands of the Quebec boards, which augurs well, he says. Recently two smaller boards that had previously opted out of CREA decided to rejoin the national association. Last September, the GMREB board of directors decided to remain in CREA despite a vote by members that rejected the status quo. Members were given three choices in the vote: leave CREA on January 1, 2013; postpone the decision until after the spring meeting; or remain a CREA member. The highest number (40.4 per cent) opted to leave CREA, while 31.5 per cent voted to postpone leaving CREA and 28.2 per cent chose to remain with the national associaREM tion.
CAAMP warns weakening market will hurt economy
A 1.800.410.4510 • print@colourtech.com
www.colourtech.com
new survey by the Canadian Association of Accredited Mortgage Professionals (CAAMP) warns of a weakening housing market with economic implications. Chief economist Will Dunning says that government restrictions on mortgage borrowing have set the stage for a steady decline in new home building, which will trigger job losses and a drop in housing related economic activity by 2015. “CAAMP has argued that government efforts to slow the housing market have long-term negative
economic consequences and the data continues to support our assessment,” says Dunning. “Until now, housing has played a major role in the recovery from the 2008/09 recession. That economic driver is disappearing as we see housing-related jobs dry up and consumer confidence erode at a time when the national recovery is struggling to pick up steam.” The survey of Canadian mortgage holders found: • An average of 69 per cent have fixed-rate mortgages. • Their average mortgage rate
is lower – 3.52 per cent compared to 3.64 per cent last year. • 18 per cent of mortgage holders increased their mortgage payments in the past year. An additional 16 per cent made lump sum payments on their mortgages during the past year. • About eight per cent of all homeowners took out equity, averaging $48,000, similar to 2012. • 80 per cent of mortgages have an original amortization of no more than 25 years. • Most borrowers plan to repay REM early.
July 1st 2013, the day traditional SMS becomes outdated
touchbaseSM2.ca
12 REM JULY 2013
Why you’re struggling to generate leads By Ingrid Menninga
I
f you’re like most agents, what you really want is leads – or more specifically, help generating leads. In a recent survey, 95 per cent of you said that’s the main thing you want our help with, so today I’m going to be totally straight with you. There are two main reasons why you’re not generating leads. The No. 1 reason is because you’re likely busy working “in” your business instead of working “on” your business. That means you are busy fielding calls, answering emails, doing social media updates and setting up appointments….everything that keeps you really busy and “in” the business. It fills your time, and helps you to
close any current deals, but it does not get you any more leads. When you do this, you’ll experience the “peaks and valleys” of your business. One month you’re busy, the next you have nothing going on and you’re thrilled to have even one or two (not very motivated) clients. The second (and bigger) reason you’re struggling to generate leads is because you probably never learned how to do it in a way that works for you. Here’s what I mean. If you’re the super-confident type-A personality, cold calling, door knocking and other interruption marketing works well for you. You are big and brash and you don’t mind facing hang-up after hang-up after hang-up. You power on, keep on calling and eventually you win some business. To close about 25 deals in one year, you need to make over 6,000 cold calls. That’s a LOT of cold calls. To make that marketing tactic work
for you, you need crocodile-thick skin and such confidence that you’re comfortable facing rejection after rejection. Why do so many agents do this? Mainly because the typical real estate training available recommends these “hard sell” tactics to generate leads. They focus on calling expireds and FSBOs and continuously calling a farm area. It used to work before and for some of you it still does. But for the rest of you, it’s failing miserably. Why? Because it’s just not inline with you are. It is terrible for your confidence and rarely, if ever, works for you. The real tragedy is that you might start to take this personally, like you’re not cut out for this industry, and that is 100 per cent not the case for 99.99 per cent of you. There’s another marketing tactic that works like magic, which very few agents are using. Permission marketing is an incredibly effective way to market your business, stay in touch with
clients and generate leads that close… and it feels good! It was popularized by Seth Godin, a bestselling author and marketing guru. “Permission marketing is the privilege (not the right) of delivering anticipated, personal and relevant messages to people who actually want to get them. It recognizes the new power of the best consumers to ignore marketing. It realizes that treating people with respect is the best way to earn their attention,” says Godin. When you treat prospects and clients with respect and get their permission to stay in touch, you will in turn earn their respect, gain their attention and build their trust. An example is an e-newsletter that your prospects need to sign up for (also called opt-in) instead of you adding them to your list unsolicited. Using Seth’s keywords above, you would set the expectation for how often they would hear from you and the content that you are sharing will be relevant. Your
job is to advocate on your client’s behalf. You should be providing information that helps them to make decisions that are better for them, whether that’s making more money, saving more money or avoiding making bad choices because they don’t have the right information. Your e-newsletter is a great way to show your value by providing unique, relevant and in-depth content that will help your prospecting database make better decisions relating to real estate. Since you actually care about what your clients and prospects think, your consideration will be rewarded with better quality leads, better quality clients and a more enjoyable business overall. Ingrid Menninga is the founder of Jolt Marketing where she helps real estate agents get more high profit clients. Join Ingrid’s next free webinar, 5 Steps to More Leads and Big M.O.N.E.Y at www.5stepsocialmarketing.com/freetraining REM
Insurance Renewal 2013 The Real Estate Council of Ontario’s (RECO) insurance broker, Alternative Risk Services Inc., has renewed its insurance coverage with Lloyd’s for the Sept. 1, 2013 to Sept. 1, 2014 policy period. The insurance program is managed by Dion, Durrell + Associates Inc. Coverage includes Errors and Omissions, Commission Protection and Consumer Deposit insurance. Insurance renewal invoices will be mailed in early July to all registrants. A copy of the renewal package is also available on RECO’s website at www.reco.on.ca.
How to How to p pay ay you yourr insu insura ranc nce e pr prem emiiium um Use yo y ur MasterCard or Visa to ppay your y insurance online througgh MyWe y b,, RECO’s exclusive web por p tal for regis gi trants. IfIf you don’’t alrl eaddy have a MyW MyWebb account,, creating i g one iis easyy andd ffree,, siimpl ply visit ii https://myweb.reco.on.ca to sign sign g up up. p Plea Please se mak makee your pa p yme y nt as soo soonn aass poss ossibl iblee. RECO RECO doe doess not ac accep ceptt paym payment entss by by phon phone. e.
Insurance payments are due by Aug. 16, 2013. The total cost of insurance, including taxes and expenses, for the 2013 - 2014 policy period is $400.
Suspension process
Commission protection coverage
Retiring or leaving the business before September?
Registrants who fail to make their insurance payment by the due date will become part of the suspension process and will be required to pay an additional $35 for expenses related to administration of the suspension process. The total cost of insurance after the due date is $435. Non-payment results in suspension of registration effective Sept. 1, 2013.
Registrants may claim commissions owed to them from the two-year period prior to the date of loss established by the insurer (eg. bankruptcy date of a brokerage). Once the date of loss is established during the policy period, all commission claims must be reported to the insurer within the two-year period following the date of loss. Visit MyWeb at https://myweb.reco.on.ca to view the complete insurance policy.
Terminate your registration by Aug. 2, 2013 to avoid becoming involved in the suspension process. You have two options for completing your termination: s
Send a completed “Notice of Change: Termination” form and a copy of your resignation letter to RECO’s Registration Department; or
s
Have your Broker of Record or Branch Manager complete the termination process for you on MyWeb. See RECO’s website for further details.
Additional insurance program details and FAQ sheets are available on MyWeb. Contact RECO’s Insurance Department Directly At:
Online (MyWeb): https://myweb.reco.on.ca | Phone: 416-207-4841 | Toll Free: 1-866-757-7772 | Fax: 416-207-9020 or 416-207-4820 | E-mail: insurance@reco.on.ca
14 REM JULY 2013
Is real estate really that simple? By Jagdeep Singh
P
ercentage change: The commission game, by Tara Perkins, a real estate reporter with the Globe and Mail, was interesting to read, mainly because it had a good mix of fact and fantasy. Published on May 25 as a cover story in the printed business section, it discusses real estate commissions. According to Perkins, “Technology has failed to snap consumers out of their complacency.” Perhaps what seems like complacency is actually a real, need-driven service that consumers are seeking out. Real estate transactions are increasingly more complex than ever before.
A simple measure of this complexity is real estate forms. They used to be much simpler and involved a lot less legalese. The standard form alone now is five pages long. Add a few pages of clauses and you are dealing with a pretty hefty document. I haven’t even discussed all the legal papers required before getting to the offer stage. But let’s just say that a real estate sale is as easy as adopting the technology. The Internet part merely gets the buyers and sellers information about the real estate that’s for sale. One still has to safely navigate the procedures set out for selling and buying houses, which by the way are not dictated by Realtors but by the laws of the country. Between spousal consents and terrorist financing, a real estate sale is not as easy as browsing the Internet. Yes there has been a lot of talk about the Competition Bureau, at the expense of taxpayers’ money, trying to accomplish whatever
they were trying to accomplish. I really fail to see what is so anticompetitive about real estate commissions from a consumer’s perspective. The choices available to the average home seller or home buyer are endless. You don’t have to believe me. Just get a real estate license and then try and go out and get a listing. You will very quickly realize how much competition is out there within the real estate community itself. There are Realtors providing options from low commissions to buyer discounts to added incentives, in addition to charging less commission. Just like anything else, the age-old wisdom of “you get what you pay for” applies. There are a lot of flat fee, mere posting services out there. These programs work or don’t, depending on who you ask. Several companies started out on similar fee structure and have since closed down. Realistically, if these kinds of programs worked, then don’t you think that companies like
Century 21, Royal LePage and Re/Max would have them? I am not a national Realtor. There’s no such thing. I provide powerful local focus with a global perspective, within the Greater Toronto Area. So when discussing market, I stick with the GTA and what is happening here. Every newspaper and media outlet seems to be having a field day with the housing prices and how they have risen, supposedly at an astonishing speed. Does anyone stop to wonder why that is happening? Perhaps the GTA’s population growth should be an indicator. Immigration to this country is still very strong. Look at the current vacancy rates in Toronto and you will see how people are flocking to rent while there are virtually no vacant condos out there. All these tenants are potential buyers and they will buy as soon as they can qualify for a mortgage. Where do you think the prices will go then, up or down?
So it seems baseless for Perkins’ article to speculate that the market is going to stay flat, that the sellers are not going to make as much money and somehow that is going to cause a downward push on the real estate commissions. Maybe real estate commission are what they are because the real costs to being a Realtor are way higher than what meets the eye. CREA’s consumer education campaign has the right premise: “Why do we think if we can look it up (on the Internet) we can do it? When it comes to your home, get help, get a Realtor.” Jagdeep Singh is a Realtor in the Greater Toronto Area with a Bachelor of Architecture degree. He has several years of experience in real estate and his knowledge and experience in architecture affords him a unique perspective into new single and multi-family developments. www.JagdeepSingh.ca REM
OWN YOUR FUTURE EQUITY COMPENSATION 100% COMMISSION UNIQUE SOFTWARE SUITE TOTAL MARKETING SUPPORT
Gaius Carmichael, CEO • Arne Tjerno, President, International Development • Les Doll, CFO
REGIONAL MASTER FRANCHISES available across Canada & U.S. For more information, contact Arne Tjerno arne@escorealty.com 1-902-877-8626 toll-free 1-888-434-9381
ESCOREALTY.COM
EQUITYSECURITYCOMMUNITYOWNERSHIP
16 REM JULY 2013
A 44-year career in the City of Roses
Bob Pedler is a legend in Windsor, Ont. for his many and varied volunteer community activities and his remarkable achievements in the real estate business. By Dennis McCloskey marketing skills and sharpened his business acumen to create a multi-million-dollar-a-year real estate company. According to Statistics Canada in 2011, there are 126,843 private homes in this south-western Ontario city of 211,000 and Pedler is proud that he has put a good number of people in those homes by adhering to his business motto: “I sell a better way of life.” When asked to reveal his secret to success, the octogenarian says it’s no secret. “Just give of yourself and word-of-mouth will take care of the rest.” Forty people work at the company on Edinborough Street, including two of his three sons. Greig is the firm’s manager/broker (Greig’s wife, Mary Catherine, runs the front office) and Dave is assistant manager, working daily with new sales representatives. Another son, Scott, works in the computer business. The symbol of a lion (the family’s coat of arms) appears on Bob Pedler’s for sale signs. (Photos: Hanakaeye Photography)
A
star was born on Aug. 26, 1930, but it took another 71 years before Bob Pedler was given his very own star. It’s on the Windsor and Region Walk of Fame, which was created “to recognize the highest level of individual excellence and achievement in any field.” Pedler learned of the honour in May 2001, when Herb Gray, then the deputy prime minister, announced his induction into the Walk of Fame, along with 18 other city luminaries. The veteran Realtor earned the honour because of his many and varied volunteer community activities and his remarkable achievements in the real estate business, which he joined in 1956 and continues working in today as broker of record at Bob Pedler Real Estate Limited in
Canada’s southernmost city. Born in Hamilton, Pedler became a Windsorite at the age of three when his family moved to what’s known as the “City of Roses.” As a young man he was manager of a small “fiveand-dime” store when he spotted an ad in the newspaper for a real estate salesman at Economy Home Builders. He applied for the job and landed it after just one interview. “I think they hired me because I was doing innovative things at the store,” he says, nearly six decades later. “I had sold venetian blinds to Chrysler Corp. and I guess it was just obvious that I loved selling.” He became so adept at selling homes that he formed his own company in 1969, and in the next 44 years he used his entrepreneurial spirit, honed his
Greig started working with his father 39 years ago and calls it “a privilege of learning firsthand from a man who is tops in the industry.” He adds: “He puts his heart into everything he does and has an amazing list of accomplishments. He strives to keep himself up-to-date and gives it his all, whether it is the real estate business or a charitable event.” Dave has worked with his father for 34 years and has high praise for his dad’s “amazing” time and energy commitments to community organizations, fundraisers and the real estate brokerage. “The wealth of knowledge to draw from is phenomenal,” he says. Twenty-eight major community achievements, real estate accomplishments and awards grace the senior Pedler’s extensive bio, including pastpresident of the Ontario Real
Estate Association (OREA) in 1981 and past-president of CREA in 1987. A Fellow of the Real Estate Institute and a one-time CREA delegate to the United Nations Commission on Human Settlements, Pedler is also a 2013 recipient of the Queen’s Diamond Jubilee Medal. His list of achievements is legendary in the Windsor-Essex region as he has served in a variety of top volunteer positions, such as two-time president of the Windsor-Detroit International Freedom Festival and member of the board of the Capitol Theatre, a downtown venue for feature films and plays since 1929. Pedler says he likes Windsor and its people and he has enjoyed everything he has done. And he has confidence to spare. When Windsor’s chief of police asked him to be the founding chairman of Windsor Crime Stoppers, the chief asked Pedler: “Can you handle it?” To which he replied: “Piece of cake!” Asking this take-charge man to name his favourite accomplishment is like asking Ben & Jerry their favourite ice cream flavour, but the onetime president of the Canadian Historic Railroad Association (Windsor-Essex Division) concedes that helping to bring a steam locomotive to his city, restore it and create a campaign to raise funds to pay for its permanent display in Dieppe Park makes him especially proud. The locomotive was found at the CN rail yards in London, Ont. in 1961. It, and many others, was destined for the scrap heap but the big engine was purchased for $3,500 and brought to Windsor, where it is now known as Engine 5588, the Spirit of Windsor. “I got some school children to help paint it and with the help of a lot of volunteers we restored it to its original grandeur,” says Pedler.
The tireless and energetic broker had a stroke over a year ago and while he says he is not fully recovered, he works a halfday in the office every day of the week. He has no plans to retire because he says he likes people “and I hope they like me.” He credits his two sons for doing a “great job” with the day-to-day business of running the brokerage. Pedler still likes to offer advice to new agents. “When you work for a client, give them more than they expect, and in the process if you gain their respect you have a customer for life.” A model railroader who collects Lionel trains, Pedler lives in a downtown condo where he says he can be “anywhere in 20 minutes.” He is also a collector of 75 unique china Santa Clause figurines that have come from many parts of the world. For decades, Windsor residents have become familiar with the company’s slogan “Put a Lion on Your Lawn.” The symbol of a lion (the family’s coat of arms) appears on the company’s for sale signs dotted throughout the city and county. A 20-foot replica of a lion has been floated down Ouellette Avenue during a Santa Claus parade and a real, live 650lb. lion was once brought into the lobby of a movie theatre as part of a company promotion. When asked his opinion of the future of the real estate business, Bob “The Lion-Hearted” Pedler says his outlook is “positive” and “the industry is in a solid position going forward.” For a man who has accomplished so much, Pedler’s philosophy for winning in business and in life is surprisingly simple, and it is based on the achievements of his hockey hero, former Detroit Red Wings star Gordie Howe: “Try hard and you can be a success in life.” REM
On the streets of Montreal or by the water in Vancouver – the ICX.ca app keeps Canada’s commercial listings in the palm of your hand. Brought to you by CREA, it provides instant access to the most popular features of ICX.ca – Canada’s gateway to commercial real estate.
18 REM JULY 2013
® CANADIAN MORTGAGE AWARDS
WINNER 2013
Consequences if you misrepresent LEGAL ISSUES
RECOGNIZED BY THE CANADIAN MORTGAGE AWARDS 2013
VERICO Financial Group Inc.
By Donald H. Lapowich
■ ■ ■
T
VERICO Financial Group Inc.
he plaintiff builder agreed to buy a number of lots to build structures on. The defendant misrepresented that it had financial difficulty and said the plaintiff had to give up some lots or pay a higher price. This allegedly would allow the defendant to proceed with developing the project (creating serviceable lots). The plaintiff believed the defendant and gave up four lots. It did not wish to lose its substantial deposit and wanted the project to proceed. The plaintiff sued the defendant for damages for misrepresentation after learning that the defendant only represented what it did because lots had greatly increased in value since the plaintiff’s agreement to buy them. The court held that the defendant’s representations were false. The plaintiff relied on them and because the value of four lots given up had increased in value, the plaintiff was awarded $858,000 in damages. (W.E. Industries Ltd. v. 618061 B.C. Ltd., 2012 BCSC 248) ■ ■ ■
CANADA’S #1 MORTGAGE BROKERS NETWORK. FIND A MORTGAGE BROKER NEAR YOU. www.verico.ca
on the balance of probabilities. In New Brunswick at least, the court has indicated that all the evidence is to be assessed and established on the balance of probabilities that the insured set the fire or caused it to be set. In other words, all three elements are not absolutely necessary if the evidence points to arson. In this case, proof of motive was absent. Nevertheless, arson was proven in a civil manner. (Richardson v. Smith and State Farm Mutual Automobile Insurance Company et al, 2012 NBCA 75)
The New Brunswick Court of Appeal has come up with a looser test with regard to establishing arson in civil actions. Initially the insurance company had to establish each of three elements: (a) that the fire started from an incendiary origin; (b) that the insured had the opportunity to set the fire; (c) the insured had a motive
In the sale of 18 lots by a developer to a builder, the agreement used the not uncommon phrase: 18 “fully serviced lots”. The sale closed and it took the developer a whole year after closing to complete the sewage disposal system. This delayed the builder’s program as a result. The British Columbia Court held that the contract should be
Important words in an Agreement to Purchase between educated business land dealers rule the day. construed with “a good business sense”. Therefore the builder must be able to build homes without delay. “Fully serviced lots” meant completed for purposes of building. Important words in an Agreement to Purchase between educated business land dealers rule the day. (W.E. Industries Ltd. v. 618061 B.C. Ltd., 2012 BCSC 248) Donald Lapowich, Q.C. is a partner at the law firm of Koskie, Minsky in Toronto, where he practices civil litigation, with a particular emphasis on real estate litigation and mediation, acting for builders, real estate agents and lawyers. REM
You could Be Better with Better Homes and Gardens® Real Estate Canada. Being a franchisee is the ideal way for a local company to grow. Joining the iconic and trusted Better Homes and Gardens Real Estate brand allows our brokers to expand into new markets and grow their agent base across Canada. It’s a perfect relationship. You have a great company, but with Better Homes and Gardens Real Estate Canada you could Be Better. To find out how you can be better: 1-855-466-0003 BHGCANADA.CA
trusted brand
innovative tools
training & support
franchisee opportunities
©2013 Better Homes and Gardens Real Estate LLC. Better Homes and Gardens® is a registered trademark of Meredith Corporation licensed to Better Homes and Gardens Real Estate LLC. Equal Housing Opportunity. Each Better Homes and Gardens® Real Estate Franchise is Independently Owned and Operated.
Best Team Spirit
Most Unique Item
Thank you for helping
Most Creative Photo
to raise over $365,000!
Royal LePagers from across Canada raised more than $365,000 at the 5th Annual National Garage Sale for Shelter, held on Mother’s Day weekend. The event’s proceeds support 200 women’s shelters nationwide, restoring hope and helping thousands of women and children escape family violence. Since 2009, this event has raised more than $1.6 million to support women’s shelters and violence prevention programs. At Royal LePage, we are committed to breaking the cycle of domestic violence. Through a variety of events and initiatives, our brokers, agents, managers and staff have raised more than $16 million since the Royal LePage Shelter Foundation was established in 1998. 100% of all administrative costs are covered by Royal LePage, so every dollar raised helps create safer homes and communities across Canada.
Learn more at www.royallepage.ca/shelter
Thank you to everyone who made this event possible, including our major sponsors TD Canada Trust Mobile Mortgage Specialists, Atlas Van Lines Canada and Your Commission Today™. Congratulations to the photo contest winners at the 5th Annual National Garage Sale for Shelter: • Best Team Spirit: Royal LePage True North Realty (Fort McMurray, AB) • Most Unique Item: Royal LePage Estate Realty (Toronto, ON) • Most Creative Photo: Royal LePage Frank Real Estate (Whitby, ON)
Best Team Spirit
Most Unique Item
Thank you for helping
Most Creative Photo
to raise over $365,000!
Royal LePagers from across Canada raised more than $365,000 at the 5th Annual National Garage Sale for Shelter, held on Mother’s Day weekend. The event’s proceeds support 200 women’s shelters nationwide, restoring hope and helping thousands of women and children escape family violence. Since 2009, this event has raised more than $1.6 million to support women’s shelters and violence prevention programs. At Royal LePage, we are committed to breaking the cycle of domestic violence. Through a variety of events and initiatives, our brokers, agents, managers and staff have raised more than $16 million since the Royal LePage Shelter Foundation was established in 1998. 100% of all administrative costs are covered by Royal LePage, so every dollar raised helps create safer homes and communities across Canada.
Learn more at www.royallepage.ca/shelter
Thank you to everyone who made this event possible, including our major sponsors TD Canada Trust Mobile Mortgage Specialists, Atlas Van Lines Canada and Your Commission Today™. Congratulations to the photo contest winners at the 5th Annual National Garage Sale for Shelter: • Best Team Spirit: Royal LePage True North Realty (Fort McMurray, AB) • Most Unique Item: Royal LePage Estate Realty (Toronto, ON) • Most Creative Photo: Royal LePage Frank Real Estate (Whitby, ON)
22 REM JULY 2013
Realtors prove great minds think alike Announcing
G
A beautiful way to stay top of mind with your clients! top-of-mind
HAPPY THA NKSGIVIN
G
Customized C t i d Greeting G ti Cards C d for any occasion! Calll today for more informattio on!
Happy Canada Day
From the Market Connections Team courtney@marketconnections.com vivian@marketconnections.com “Like” us on Facebook! Follow us @rrnewsletter!
1-800-387-6058 www.realtyreport.org
reat minds, as the saying goes, think alike. Realtors Penny Kiely and Maxine Reid worked together years ago, but drifted apart. A search for new office space brought them back together. Kiely and Reid had worked for Bowes and Cocks in Dorset, Ont. for many years, starting when the office first opened in 1988. They weren’t a team, but Kiely says they worked well together. In 1997 Kiely “took a sabbatical and adopted a couple of kids.” After a management change at Bowes and Cocks, Reid moved on to a local Chestnut Park office. All the while, the original office, which Kiely’s father had built as a real estate office for his daughter, remained vacant. Five years later, when Kiely decided to return to work, she went to check it out. Unbeknownst to her, Reid was also looking at the same office space because Chestnut Park had closed its local office. When the two Realtors found out they were looking at the same property, they decided to open the office together. Royal LePage Lakes of Muskoka Realty Brokerage, Dorset “re-opened” in March 2012. The broker of record is John O’Rourke and they hired a new agent, Dorset resident Elissa Boughen, after she obtained her real estate licence last July. Kiely has been a Realtor for more than
30 years and Reid for 23 years. Their office is housed in a Viceroy model home. “It’s different than most offices because it’s got the feel of a home,” Kiely says. “It has cathedral ceilings, three offices and an open area. We hang the pictures differently, but it’s basically the same office” as when it was Bowes and Cocks. It overlooks the Lake of Bays and up a hill to the Dorset Lookout Tower. It can be seen from Highway 35 and is an easy walk for those in the downtown core, she says. The office is in the small but busy tourist town on Lake of Bays. “It’s a lucrative and big geographic area,” she says. Kiely’s office serves the northern Haliburton and Muskoka area.
“We specialize in recreational properties. We’re well-dressed bush bunnies who show properties by snowmobile and snowshoe. We have a Royal LePage boat. We’re into Algonquin activities. That’s the kind of Realtors we are. We dress up, but a lot of times we’re in jeans and hiking boots.” They sell properties priced from $100,000 to several millions of dollars, she says. “We have different sizes of lakes and different sizes of pocketbooks.” To help spread the word about their “reopening”, the Realtors had a float in this year’s Dorset Winter Carnival. “The idea is to bring tourist dollars into the local economy and we wanted to make it a vibrant and fun affair,” Kiely says. – Connie Adair REM
From left: Penny Kiely, Brad Robinson (owner of the property), Maxine Reid, John O’Rourke (broker of record) and Elissa Boughen.
Project sponsors pop-up concerts
S
AX Condominiums Old Montreal, a luxury condo project, took a soulful approach to kick off the opening of its new sales showroom: in honour of the owners’ love for jazz music and a pun on the name SAX (for saxophone), SAX hosted jazzinspired events throughout the city. “Pop-Up” jazz performers entertained in the streets of Montreal’s downtown core and the Old Port. It also held a live on-air singing contest, hosted by The Beat 92.5. The “Beat the SAX”
competition gave one lucky contestant a grand prize of $5,000.
A rendering of the SAX condominium building in Old Montreal.
Situated at the corner of Wellington and King Street (just west of McGill Street), the building that was previously a shoe factory will be transformed into 167 units named after legendary jazz artists. Units range from 420 to 1,862 square feet with spectacular common areas such as a lobby with unique jazz-inspired artwork, an indoor gym and a rooftop pool, the company says. For information: www.sax1.com. REM
REM JULY 2013 23
Smokers significantly ruin property value By Chris Seepe
S
moking in the home may significantly affect property values, and allowing smoking in rental units is costly to landlords. Pfizer Canada, a leading biopharmaceutical company, recently sponsored a survey of Realtors conducted by Leger Marketing, which concluded that 87 per cent of Ontario real estate agents and brokers surveyed said smoking in the home lowers resale value. Eightynine per cent said smoked-in homes are more difficult to sell. Thirty-one per cent said smoking may lower a property’s value by 20 to 29 per cent, and 21 per cent said the value could drop 30 per cent or more. That’s $120,000 on a $400,000 home! Fifty-six per cent said most buyers are less likely to buy a home where people have smoked and 27
Scott Brubacher gets MREB community service award Scott Brubacher, a sales rep with Royal LePage Meadowtowne Realty recently received the Ronald E. Sanderson Community Service Award during the Mississauga Real Estate Board’s Annual Civic Reception. The award recognizes a full-time MREB member with more than five years of experience whose exceptional volunteerism in the city has had a positive impact. “Scott is a Streetsville Rotarian who gives his time and commitment to helping others and his
per cent said most buyers are actually unwilling to buy a home where people have smoked. The number one reason given was smell; number two was health (second- and third-hand smoke). Rental landlords know about smoker smell. Unless the new renter of the unit is a smoker too, the new tenant invariably requires the unit to be “detoxified.” This may cost $450 to paint a one- or two-bedroom unit, $100 or more to steam vacuum the carpets and maybe $100 to wipe down and clean all other surfaces (windows, mirrors, balcony doors, closet doors, kitchen cabinets, appliances). You may need to replace or repair countertops, appliances and other surfaces that have been marred by cigarette burns. In a heavily smoked-in unit, you may need to use a stain killer primer or extra paint; replace carpets; clean vents, ducts and ceiling fans; and even clean electrical sockets, where tar and nicotine can accumulate. Promising to deliver a
community. You can often find Scott helping out wherever he is needed, including the Eden (Community) Food Bank,” says Sandra Pitts, Streetsville communi-
Scott Brubacher, centre, with Royal LePage Meadowtowne Realty’s broker/owner Gloria Riddall and broker of record/owner Alex Ocsai.
smoke-free unit that still aggravates the new tenant could lead to further costs and a rent abatement award from the Landlord and Tenant Board. Now add in the possible loss of the insurance deduction for a smoke-free building. Then there are the possible complaints of neighbours, or the loss of tenants with health concerns for themselves or their children. The Council of Canadian Fire Marshals and Fire Commissioners report that smokers’ materials and open flame (cigarettes, lighters and matches) remain the No. 1 ignition source in fatal residential fires. Between 1993 and 2002 (most recent figures available) there were 9,414 fires, more than $231 million in losses, 688 injuries and 94 deaths caused by lit smokers’ materials. Landlords and property managers may be concerned that rejecting smoker tenants would constitute discrimination and pos-
sibly increase their vacancy rate. The former is incorrect and statistics for the latter say otherwise. Smokers are not one of the protected groups of the Human Rights Code and, according to the NonSmokers’ Rights Association Smoking and Health Action Foundation, it is legal for a landlord anywhere in Canada to include an enforceable no-smoking policy in their lease. Health Canada’s Annual Canadian Tobacco Use Monitoring Survey (2011) reported that 14 per cent of Canadians smoke daily, while four per cent smoke occasionally. Daily smokers consumed an average of 14.4 cigarettes per day. Rental landlords, take note: a survey commissioned by the Ontario Tobacco-Free Network (conducted by Ipsos Reid) that researched drifting second-hand smoke in multi-unit dwellings (March 2007), reported that 64 per cent of Ontario respondents would prefer a smoke-free building
ty event and sponsorship co-ordinator. Brubacher takes part in all types of events in his community looking for ways to assist in activities that provide opportunities, such as the three-day Camp Enterprises held at the University of Toronto Mississauga campus, which brings together 80 secondary school students from across the city to learn about business ethics, marketing, working in teams and building networks and friendships. He says it’s the sense of community in Streetsville that inspires him to volunteer. This is the second consecutive year a sales rep with Royal LePage Meadowtowne Realty received this award.
ing while enjoying a sense of pride in his profession. He found the sweet spot in the field of real estate in the 1970s, and Dario Mattei success naturally followed. Mattei has enjoyed a 38-year tenure with Royal LePage in Toronto and has the distinction of 30 consecutive years as a Chairman’s Club member, which recognizes annually the top one per cent in sales across Royal LePage. Throughout his career, Mattei says he committed himself to simple methods to realize success: hard work, devout time management, honesty and exceeding his clients’ expectations whenever possible. Mattei also credits the network of Royal LePage agents across Canada he has come to know through friendship and referrals, as well as the clients he has helped over the years.
30 consecutive years as Chairman’s Club member As a young man and newly arrived in Canada, Dario Mattei’s goal was to settle in a career that would allow him to earn a good liv-
if such a choice was offered. That means that, as a rental landlord, you can either: a) rent to the minority 14 per cent market of smokers, try to attract some of the remaining 22 per cent who appear to be indifferent to smokers, and pay the additional smoker-specific cleaning costs when re-renting a unit, or; b) rent to the 64 per cent of smoker-intolerant tenants; try to attract some of the same smokertolerant 22 per cent (total 86 per cent of the market) of tenants and save the average $650 additional smoker-specific cleaning costs. Chris Seepe is a commercial real estate broker and broker of record at Aztech Realty in Toronto, specializing in income-generating and multiresidential investment properties, retail plazas, science and technologyrelated specialty uses (laboratories, data centres, call centres) and tenants mandates. (416) 525-1558; Email cseepe@aztechrealty.com: website www.aztechrealty.com. REM
Royal LePage website honoured Royal LePage’s mobile website earned a 2012 award of distinction from the international Communicator Awards in the category of mobile sites-business. The Communicator Awards recognize work that “transcends innovation and craft,” says the competition’s website. An award of distinction is presented for projects that exceed industry standards in quality and achievement. More than 6,000 entries were received for the 2012 competition, which included for the first time a category for mobile projects. Royal LePage’s mobile website was developed in collaboration with Plastic Mobile and launched in 2011. This is the third time the Royal LePage mobile site has been honoured. The site was recognized in 2012 with a Horizon Interactive award and most recently, a Gold in the Mobile/Responsive Web category at the Horizon Awards. REM
24 REM JULY 2013
METES & BOUNDS
By Marty Douglas
Y
ikes! Or in newspeak – OMG! This disclosure thing is getting to be quite sticky isn’t it? Remember when it was a bit of a fad? Combine the Property Disclosure Statement with that other former novelty, the home inspection, and you have a potential time bomb with every house built pre-1990. Imagine this: you have a buyer making an offer, subject to inspection, and the home is a pleasant older two-storey 1,000-square-feet per level built to the code of the day. What’s lurking? Besides the neighbourhood pedophile? (That would be a “stigmatized” property, an entirely different swamp to drain.) Again, what’s lurking? Plumbing that may shatter at the joints. Gas hot-water tanks not adequately vented. Inadequate electrical service. Lead-based
The challenges of disclosure paint. Mould and moisture. Former grow-ops. Buried oil tanks. In B.C. at least, unregistered builders. Archaeological sites. Endangered species. And the big one – asbestos – not only in the vermiculite attic insulation but in the mud that seals the drywall joints. Or in the laundry room tile. Or the ceiling tile. Or the mortar between the bricks. What the hell – the list will take your mind off the jet fuel pipeline easement on your back property boundary. At least the right-of-way was listed on the title. Part of the problem is the growth in knowledge of what can do us harm, the failure of the disclosure forms to keep up with the technology of today, the political aspirations of all levels of government to protect us from things that, when the disclosure form was invented, we hadn’t considered. It’s sort of like coffee and red wine. One week they are good for you, the next it’s “get your affairs in order!” Case in point: Poly B pipe for plumbing. It’s in the building code and has been since the 1970s. Of course, so were asbestos and the leaky condo building envelope. The southern U.S. experienced too many water escape insurance claims, especially in high heat
areas, in mobile homes and in homes with ceiling installations, serviced by water with high chlorine content, frequently as a result of improper installation. There is little evidence of similar problems in Canada. However, when the U.S. sneezes, sometimes we catch cold. Half the insurance companies offering homeowners insurance in my community want to know if there’s Poly B plumbing on the site. Ever tried to get financing without insurance? If you Google Poly B you’ll find the debate is ongoing in Canada and some consumers are opting for plumbing inspections and where warranted, replacement – at least of the fittings. Another disclosure challenge: native land claims and heritage sites are an ongoing issue on the west coast. Land located near a flat beach or estuary is a potential minefield for the unwary. Excavations in the course of construction or renovation have discovered human remains, garbage dumps, artefacts or other evidence of our First Nations history. The subsequent cost and time delays to the owner of the land are significant and the curative bureaucratic process can be formidable. Along comes the listing agent,
deemed to have local knowledge and required to make inquiries at the local government offices. At our regional district offices – B.C.’s rural government – rests The Book. Its content is revealed only to those who ask specific questions. Hooded robes are donned. Maxwell Smart’s cone of silence descends. You can look but not touch. Therein you may find your listing, colour coded for native land claims, historical sites, heron and eagle nesting trees in the vicinity, salmon bearing streams and Jimmy Hoffa’s remains. Okay, maybe not JH but other remains for sure. Then the selling salesperson should re-check the sources and paper it all over in the offer. The lesson – or as they say in almost every one of our continuing education courses, the takeaways? (To those of British extraction, “takeaway” does not refer to a curry or fish and chips.) The lesson for sellers might be to have an inspection done before entertaining an offer. Fix everything. Burn the report. (Just kidding – CSI folks can do remarkable things with ashes. Better swallow it.) For buyers, a professional inspection with a detail of your concerns to the inspector – and still, beware!
Alexander Pope students (the older folks in the back row) will recall his Essay on Criticism in 1709: “A little learning is a dangerous thing, drink deep or taste not the Pierian Spring.” In other words, learn it all or don’t bother. Accept your ignorance. After all, better to be ignorant than stupid. Consider no inspection at all. I asked my favourite mortgage broker how deeply lenders investigated the presence of asbestos in the home. “What does the disclosure say? If it says ‘no’ then no problem, we don’t look any further.” Remember Corporal Schultz in Hogan’s Heroes? “I know nothing!” He could have made a great Realtor, with no successful E&O claims. Be careful out there. Contact Marty Douglas by email at mgdouglas247@gmail.com. Follow or connect with Marty on Twitter, LinkedIn and Facebook. He is a managing broker for Re/Max Ocean Pacific Realty in Comox and Courtenay, B.C. He is a past chair of the Real Estate Errors and Omissions Insurance Corporation of B.C., the Real Estate Council of B.C., the B.C. Real Estate Association and the Vancouver Island Real Estate Board. REM
8 core strategies for your best year ever By Glenn McQueenie
H
ere is my list of the eight core strategies that will make this your best year ever. 1. Focus on “getting stuff done”. Everything you do should have an outcome attached to it. Only attend a training, coaching, mentoring or business development event if you are willing to commit to implementation right away. Learning for knowing is entertainment; learning for doing is the only reason for attending any event.
2. Focus your time on “Realtor” time and not on “Monkey” time. If you want to see how you are doing on this, start writing down what you are doing every 15 minutes. You will find that most of our time is spent “monkeying around” instead of direct interactions with our clients. Ninety per cent of work time should be spent in Realtor time, or your top 20 per cent on meeting buyers and sellers, showing homes, presenting offers and getting contracts signed. 3. Install great models and systems in your business so that every client has a great world-class experience – every time. Models and systems give you stability, predictability, freedom and leverage and ensure that you give everyone the same unique amazing service. 4. Lead generation is the key,
but improving your lead conversion skills is the real “gold”. Once you master lead conversion by installing proven systems and models into your business, and knowing what to say and when to say it, your production will soar. 5. Make sure that every new listing you take generates at least four extra pieces of business for you. See my story, Turn one listing into 4 more transactions on remonline.com for more information. 6. Orchestrate more referrals from your sphere of influence. Referrals are entirely predictable when you set a system. If you think referrals are random, you do not have the right system. 7. A career in real estate is simple, not easy. We work in an industry that is so simple to understand, yet people have a hard time trying
to make it a prosperous and predictable career. The more people you meet, the more contacts you create, the more business you will receive….and then simply rinse, lather and repeat! Every agent or real estate instructor is guaranteed to have an opinion of how to be successful in real estate. At the end of the day it boils down to the same thing. Lead generate, provide a world-class experience by installing proven systems into your business, be a nice person, treat every client you meet with the utmost respect until they self-eliminate themselves through their own actions (or your lack of skill and mastery), and build a community around yourself that constantly adds value to your clients before, during and after the transaction. 8. Seek coaching and account-
ability because you don’t know what you don’t know. All great achievers find people to encourage them on your journey. Most of the top agents I know have multiple coaches and understand that nobody succeeds alone. Glenn McQueenie is the operating principal of Keller Williams Referred Realty and broker of record of Keller Williams Referred Urban Realty in Toronto. His first office was launched in 2004 and has now grown to over 230 agents in two offices. His passion is teaching, coaching and mentoring agents to help them get more referrals from their sphere of influence, converting more leads and getting additional transactions from every listing you take. Email glenn@kwreferred.com; Phone 416-445-885; Blog www.heyREM glenn.com.
26 REM JULY 2013
T
he Association of Saskatchewan Realtors (ASR) recently donated just under $30,000 to the Saskatoon Community Foundation. Part of the new Quality of Life in Saskatchewan initiative, the funds were raised through the inaugural Legacy Gala that was held in April in Regina. Realtors from all over the province participated to support the cause. That evening the ASR also awarded $5,000 grants to six community organizations, all from different regions of the province. The funds will be used to help fund the 2014 Legacy Grant Program, managed with the local expertise of the Saskatoon Community Foundation. The program will receive applications again in early 2014. More information can be found at www.saskatchewanrealestate.com/ quality-of-life/legacy.
■ ■ ■
The Greater Moncton RealtorsCare Dragon Boat team raised more than $3,200 for the Lion’s Sick Kids fund and the Breakfast for Learning programs in Moncton’s Anglophone and Francophone School Districts. Unfortunately the event was called off due to rain. “It was sad we didn’t get to paddle because we were going to show off our great real estate ‘fro’s’ in honour of one of our own,” says board president Roxanne Maillet. “The team’s slogan was going to be ‘It’s Go Time’ in honour of the late Marlo Nickerson, who was always at the front of the crowd for this annual event, pumping up the Realtors of Greater Moncton for this great cause.” The group planned to wear wigs to honour Nickerson’s unique hair style. REM
Recently there was a gathering of presidents at a meeting at the Sarnia Lambton Real Estate Board (SLREB). From left: Dearl Hill, SLREB; Ed Quain, Eastern Thumb Association of Realtors, Port Huron, Mich.; Phil Dorner, Ontario Real Estate Association; Doug Pedlar, London and St. Thomas Association of Realtors and Bill Milliken, Michigan Association of Realtors. SLREB occasionally hosts meetings with their Michigan counterparts to discuss issues of mutual interest and to socialize. The Prince Albert & District Association of Realtors recently donated $2,200 to the STARS air ambulance service. President Al Vogt, centre, presents the cheque.
The Greater Moncton RealtorsCare Dragon Boat Team honoured the late Marlo Nickerson with wigs to match his unique hair style. Nickerson was an avid supporter of the team.
Dave James of Magic Realty in Sarnia received a plaque from Sarnia Lambton Real Estate Board president Dearl Hill in recognition of 50 years of membership. James was also granted an honorary life membership in the board. The Prince Albert & District Association of Realtors presented the local Society for the Prevention of Cruelty to Animals with $1,000. Above, association president Al Vogt and publicity and social director Leanne Nagy, centre, present the cheque.
Jason Yochim, EO of the Saskatoon Region Association of Realtors, presents Leo Morrison of Coldwell Banker Rescom Realty with an iPad Mini and Yong Bi of Royal LePage Saskatoon Real Estate with a USB from CREA as prizes for completing the Member Survey.
28 REM JULY 2013
Commission agreement basics ments are legal contracts. To be enforceable, they must not only be validly executed, but they must also conform to the requirements of the provincial regulations and the Code of Ethics Regulation. The listing agreement will be completely invalid and will not be worth the paper it’s written on (as the old saying goes) if: • it lacks a provision that it will expire on a certain date; • it contains a provision for more than one expiry date; or • a true copy of it is not delivered by the agent to the client immediately. On this last point, the agreement must not only be delivered “immediately”, but to be valid it must also be fully completed at the time of delivery. In Certa Homes Ltd. v. Brown, the agent had the seller sign various blank exclusive listing agreements, with the dates to be filled in later. The court found that this did not comply with Ontario’s Real Estate Business Brokers Act (REBBA),
By Martin Rumack
T
40
Sa
le
En
ds
Ju ly
31
st ,
20
13
MO SU NT SA PE HL VE R YS R PE CIA L
here is no shame in pointing out that from a real estate professional’s point of view, one of the most important questions that arises from any real estate transaction is: “How much and when will I get paid?” An agent’s right to commission is governed by the commission agreement, which is a complex legal document that gives rise to numerous issues relating to entitlement and enforceability of commission by an agent. Leaving aside the actual commission rates and structure, here are some of the important issues that are involved, using Ontario laws as an example. What format? Listing agree-
so the agent’s claim for commission failed. Ideally the listing agreement should be in writing, but technically speaking there is no actual legislative requirement in REBBA to this effect. From the agent’s standpoint, the problem is this: REBBA may not require an agreement to be in writing, but it does mandate that an agent cannot bring a legal action in court to recover commission unless there is either a written listing agreement, or certain other stated prerequisites have been satisfied, among them that the agent has “obtained an offer in writing that has been accepted.” In other words, the simple lack of a written listing agreement is not fatal to an agent bringing an action for commission – but it’s much, much harder to recover commission without it. A clearly drafted document in writing is the highly preferred route, since otherwise the agent will be required to prove that he was instrumental
UP TO
in “obtaining” the successful offer, and that a specific commission fee or percentage was verbally agreed to. What kind of agreement? There are several different types of commission agreements that an agent and his client can reach. Which one is right for the client and the particular situation will depend on the facts. Here are the basics: 1) Open listing. This is the “free-for-all” of listing arrangements: the seller gives authority to sell the property to one or several agents, but usually also retains the right to sell the property on his own. Commission is only payable on completion of the transaction and the agreement terminates when the property is sold or taken off the market. 2) Exclusive listing. As the name would suggest, in these kinds of arrangements the seller gives the agent an exclusive and irrevocable right to list the property for a specific time. The seller
gives up the right to deal with other agents during the currency of the listing (except perhaps through the listing agent, for example where provision is expressly made for him to use the services of other agents) and remains liable for commission even if the seller manages to sell the property himself. 3) MLS. These types of agreements cast the widest net and are the most commonly used. The property is listed with one agent (as in an exclusive listing), but the agent uses the services of other selling agents as well. The seller is obligated only to the listing agent for the commission, and that commission is shared by the listing agent and the selling agent (if they are not the same person). Amount of commission: In connection with the amount or calculation of the commission, REBBA contains surprisingly few provisions. It merely states that an agent’s commission or remuneration “shall be upon an agreed
OFF
1000 5.5x8.5 POSTCARDS Login to eprintagent.com and order your High Quality Postcards during our
Super Saver Special!
1-888-907-5550 info@eprintagent.com
All prices quoted in CAD. Shipping and taxes are extra where applicable.
1000 - 1 SIDED 14pt CARDS +AQ 1000 - 2 SIDED 14pt CARDS +AQ
$91.64
$60.99
$127.83
$75.99
Join eprintagent.com today! Prices are subject to change without notice.
REM JULY 2013 29
amount or percentage of the sale price or rental”; HST is additional. (Note that REBBA expressly prohibits any arrangement where the fee consists of a combination of both a flat-rate and a percentage; it also prohibits commission based on the difference between the closing price and the listing price). If the agreement does not provide for a set rate or range of commission, then the fee will be whatever rate prevails in the com-
commission will be governed not only by the listing agreement, but also by the specific employment contract that he entered into with that brokerage. Secondly, it may be the brokerage, rather than the agent personally, that has the ultimate obligation to collect any commission from the seller. This gives rise to an interesting question. What happens if the brokerage does not make an effort to collect the commission owed?
What happens if the brokerage does not make an effort to collect the commission owed? munity where the property is located. Who pays? In the contemporary real estate marketplace it is usually the seller in a real estate transaction who pays the agent’s commission. However, this can certainly be changed by agreement between the parties, usually by having the buyer agree to assume that responsibility in the Offer to Purchase. It is also quite common for the listing agreement to give an agent the authority to co-operate with another agent, i.e. an agent for a potential buyer. There are three possible scenarios to cover how the buyer’s agent gets paid: • the agent for the seller pays the agent for the buyer; • the buyer’s agent has the authority to negotiate and accept commission directly from the seller; or • the buyer pays commission to the agent directly (usually under a buyer’s agency agreement). Despite these various permutations, in practice the typical arrangement involves the seller’s listing agent paying the co-operating agent out of the commission received from the seller. Other considerations: Special considerations apply to situations involving agents who are employed by a real estate brokerage firm and who are obliged under a contract of employment to share commission with that organization. First of all, a particular agent’s personal right to the
The case of Crompton v. Norman Hill Realty Inc. involved this very question. There, certain real estate deals failed to close, and at issue was whether under its contract with the agents the brokerage was nonetheless obliged to pay their commission. The court held that the brokerage had an affirmative duty to the agents to make every effort to collect the commissions (or to negotiate a reasonable settlement) and to pay those agents their share of it. It would be unfair, the court concluded, to allow the brokerage to negotiate a settlement that was advantageous to itself, but that was reached at the agent’s expense. What’s the bottom line? You work hard as an agent to earn your commission. Make sure you • think about what you are required to do; • do all those things you are required to do; and • make sure you do not do something that will result in you losing your right to receive and be paid your hard-earned commission. Toronto lawyer Martin Rumack’s practice areas include real estate law, corporate and commercial law, wills, estates, powers of attorney, family law and civil litigation. He is co-author of Legal Responsibilities of Real Estate Agents, 3rd Edition, available at www.lexisnexis.ca/bookstore. Visit Martin Rumack’s website at www.martinrumack.com. REM
30 REM JULY 2013
Selling more by spending less By Carla Wood
R
eal estate professionals are infamous for overspending. Keeping up with competition can easily become the objective instead of effectively promoting your listings or representing your brand to win more “best fit” clients. Even if your marketing expenses seem low compared to most of the industry, if the dollars you spend are not directly correlating to houses sold, you are overspending – or at least spending in the wrong places! Some simple analysis and time investment can help you sell more and spend less. Start by establishing a baseline. Look at where your business has come from over the last one to three years. Contrast these business sources with your marketing expenses from each year and the year prior. Don’t lose sight of the delayed impact from marketing
spend to marketing results. If you invested in a direct mail campaign in 2011 with traction, but had three deals come “mysteriously” from that same geographic area in 2012 it may be worth considering reinvesting in that campaign. Conversely, if your social media efforts have yielded no results it may be due to ineffective use of the business opportunity and not the source itself. Remember to analyse how effectively you have used the tools in addition to what business has come from it. Consider your style. If you are still using a flip phone and check the Internet once a day from your desktop, perhaps a focused online strategy is not the route you should go. Know who you are and how you work. Whatever your approach, there are clients out there who will see your value, but first they need to know about it. The great news about avoiding a major online strategy for the flipphone-using-desktop-emailchecker is that the clients who will love your retro-approach to real estate are likely not searching online for you anyway. Perhaps a door-knocking and small direct
mail campaign would work better for you. Just remember to convey your retro-approach in all your branding so you stand out as they move the mail from the mailbox to the recycle bin. Those seven seconds can literally transform your business. Reflect on your most satisfied clients. If you can better understand what your most satisfied clients appreciated about you, it will become easier to articulate what you uniquely have to offer. Before investing in any marketing efforts, you must be able to articulate what you do beyond what most of the competition can offer. Here is a hint: it is NEVER that you are knowledgeable or give great service. Those are basic expectations of a service professional. If you are a great listener, have quick response time, are passionate about personalizing statistics for your clients...those become talking points in your marketing. Review marketing options. Take a look at what the competition is doing and create a pros and cons list for what you see. Call the businesses offering different marketing options and allow them to
give you their sales pitch, but commit to being non-committal until you complete your review of all options. Look at your own unique style and eliminate options that feel uncomfortable for you. Consider the balance between financial cost, cash flow, time commitment and the fit in that marketing approach to your target market. Test the waters. Once you have determined which marketing options you want to launch, begin with one or choose two that are well integrated. Changing everything simply increases your risk of a big dip in your success. By strategically choosing what changes to start with you protect the integrity of your business base while creating opportunity to generate even more business. Put in the extra work. Even the greatest marketing tools in the world fall short of their optimal results if you leave it to total automation. A great connection made at a networking event will likely have zero impact without a follow-up email or call and adding them to your database marketing touch points. A search engine
optimized website with great “call to action” icons will still not translate into revenue without prompt follow-up and a consistent approach to communication with Internet leads. This last point is ultimately the difference between the industry leaders and everyone else. There is no short cut to a profitable, growing business. But if you can develop some customized clarity for how your business manages the following four concepts – consistency, analysis, customization, follow-up – you can absolutely sell more by spending less. Carla Wood sold over $100 million in residential real estate before returning to her consulting roots and creating her agency ALL Strategy, a Business Alliance organization. Working with Realtors and other service-based businesses, Carla has built an agency offering strategic consulting and support to business leaders. She says: “ALL Strategy offers practical support required by today’s leaders to generate results that improve profitability while focusing on the personhood behind the business.” www.allstrategy.net. REM
House guest deterrent program By Dan St. Yves
I
f you are selling a home, the last thing you should have to explain to your clients is the requirement for ease of access for showings. While homeowners typically exude pride of ownership and gracious flexibility (I know this isn’t always true, but neither is any of the forthcoming advice I plan on providing), guests are often a wild card. No one wants to be a rude host, but when Haley’s Comet is making a second pass, guests should have long since departed – especially if you are planning open houses and showings. If you are having this discussion
with a client and they happen to mention that guests are arriving, I just might have a solution to this concern. As part of my ongoing service to readers of this feature, I provide this handy Room Rate Guide, which you are free to copy and (I would recommend) post in your clients’ guest bedroom. Or better yet, just above the three-legged cot in the furnace room. It may help in your efforts to curb that guest/company’s enthusiasm, or at least make Fawlty Towers look like the Ritz Carlton. Welcome and thank you for choosing Chez PassinThru! Room rates: First night: Free! Any extra days and nights: $45 per night, per person, plus GST – room. $25 per night, per person, plus GST – use of bed. $15 per night, per person, plus
GST – washroom privileges. $12 per night, per person, plus GST – use of hallway leading to washroom. $10 per person, per night, plus GST – “various fees related to being in our home”. Extra services: Meals: On a cost basis, assuming (for example) that 1 lb. of ground beef well past the expiry date is $27.50. Laundry: Only available on rainy days. See string leading from house to tree. Wake-up calls: Host will begin drum solo at sunrise, followed by cannon blast. Pool and/or hot tub: Take the #16 bus to suburbs, ask for directions to YMCA. Optional continental breakfast: At the option of hosts, but highly unlikely. Colour TV and cable-vision:
Channel selection limited to provincial park Goose Cam. Failing activity online, please help yourself to recycled newspapers in the garage. Daily newspaper: See above. $1 per section. Perks: Toilet paper, soap and Kleenex will be estimated by use and billed separately. Turn-down service: Host will likely turn you down when you ask for seconds, dessert, use of SUV or cash loans. House rules: Checkout time: Shortly after you have won too much at the house poker table. General behaviour: There will be no swearing, belching, gas-passing or unsightly displays of “morning hair” unless guests’ behaviour exceeds that of the hosts. Prizes will then be awarded in each of the preceding categories.
Quiet time: For the benefit of other residents, please observe quiet behaviour after 11 pm. Management apologizes in advance for breaking this rule if bagpipe practice runs long. Miscellaneous: a) There will be no dessert served unless all vegetables with the meal are consumed. b) Don’t be alarmed about the blinking red light in the bedroom ceiling. Our cameras are equipped with night vision lenses. Just be yourself. c) From time to time during your stay, you may be asked to help pluck chickens. Humour columnist and author Dan St. Yves was licensed with Royal LePage Kelowna for 11 years. Check out his website at www.nonsenseandstuff.com, or contact him at danst.yves@hotmail.com. REM
REM JULY 2013 31
AS I SEE IT FROM MY DESK
By Stan Albert
W
ikipedia says that opportunity is made up of four integrated elements, all of which are to be present in a window of opportunity – * need, * the means, *a method to apply to fulfil the needs and * a method to benefit. All of the above can be fulfilled by my favourite way to gather knowledge about the homes we sell and attract prospective buyers – with open houses. When I was a lot younger – seems like yesterday – I’d go on open house caravans and during the weekends I’d be running open houses all the time. Over the years, I’ve studied agents who are really knowledgeable about what they sell and are zealous about running proactive open houses. By proactive I mean that they blanket the area with flyers and /or call people in the neighbourhood to tell prospective buyers to come to their open houses for
Open houses offer opportunity viewing and comparing to other homes. The fact that many agents, both experienced and new, do not get out on open house tours of their own brokerages’ properties befuddles me. There are lots of good reasons to go. Meeting other agents; gathering knowledge of neighbourhood homes or builders if it’s a new development; exchanging ideas as we drive to and from the properties; and recognizing the time-saving routes for future showings are just a few of them. For new agents it’s a chance to talk to the listing agents of your own office to see if you can do an open house for them, or they may allow you to shadow them at a future showing. On returning to the office, play a game with each agent predicting what each property will sell for – and then compare notes later on in the weeks ahead to see who’s closest. I’ve lost a few bucks on these competitions! If you are just going to wait for buyers to come and view the home, you may get lucky. However, if you choose not to just be reactive to buyers coming in, try making some new contacts. Canvass other areas – townhouses, for example, if you’re selling a semi-detached property. Hand out free brochures with good home-related informa-
tion, like those available from Canada Mortgage and Housing Corp. or the local utilities or provincial energy ministries, for example. Homeowners will appreciate them and by doing this, you’ll be adding people to your pipeline of prospective buyers and sellers. Over the years I’ve developed some successful scripts that will lead to more chances to improve your sales. Agents who use these scripts and /or other dialogues find that they have more than enough prospects to work with. You can never have too many prospects can you? There are legions of agents who scoff at doing open houses. In today’s shifting market, it’s my opinion that you have to use all the ammunition you have available. The open house is one thing the Competition Bureau can’t take away from us. Be an agent who takes the opportunity to improve your knowledge and your skills. Stop being reactive to the marketplace and get out there and just do it. Stan Albert, broker/manager, ABR, ASA at Re/Max Premier in Vaughan, Ont. can be reached for consultation at stanalb@rogers.com. Stan is now celebrating his 43rd year as an active real estate professional. REM
The Realtor brand By Ozzie Logozzo
I
believe the Realtor brand matters a lot. Realtors display competent standards of business practices and they deliver on required skills and expected ethical behaviour. However, these basic requirements of certification and licensure, which focus on pitfalls to avoid, are not enough to advance the image of professionalism. When some of these standards fall, or are misused by some individuals, the entire image of the profession tends to fall with them. In a society replete with professions, we require, for differentiation, standards of professional excellence that focus on the extraordinary. Realtors, to be seen as professionals by the public and by their peers, must subscribe to aspirational attitudes and attributes that surpass basic competency. Professional Realtors must be exceptional. Their extraordinary performance must evolve from seeing, reading and daily living of some simple and concise standards of professional excellence. What might these be?
I am not sure. Further discussion and research is warranted. But let me advance some persistent notions that keep coming to mind: • A Realtor practises informed decision-making and provides wise counsel, not just information. • A Realtor engages in selfdirected, life-long learning, keeping pace with technology and the ever-growing levels of competency. • A Realtor mentors new members, inspiring them to adopt best practices. • A Realtor supports the efforts of his/her associations and is actively involved in the community. What do you think of these possible standards? Are there others? Should they become the Realtor brand? Ozzie Logozzo is executive director of the Ontario Real Estate Association Real Estate College. He was the 1993 recipient of OREA’s Education Merit Award and the 1997 recipient of Real Estate Educators Association’s prestigious Educator of the Year Award. REM
32 REM JULY 2013
Leadership observations from the real estate industry By Don Kottick
F
ive years have passed since I wrote the REM article Leadership: A Fish Rots from the Head Down and I continue to add to the repository on the subject of leadership. Based on my experience in the field of real estate, it has become abundantly clear to me that there is a “shortage” of good leadership models or mentors within this industry. If you find one, do not let go of them. They tend to be rare finds. Many individuals claim to have tapped into “the fountain of knowledge” only to discover that many have only tapped into their own egos. Some of my best leadership lessons were not intentional and were not served to me by some eru-
dite sage imparting their great wealth of knowledge and experience. Some of my best leadership lessons were derived by observing certain behaviours and actions; then realizing these were things NOT to emulate in order to be an effective leader. Often indirect education can be more powerful than intentional schooling. If you are fortunate, you may come in contact with some exceptional business leaders who have the extraordinary gift of conveying their wisdom, experience and knowledge. These are the individuals to model and hopefully engage as your business mentors. As Bill Phillips, CEO of the William Phillips Group stated, “Most successful leaders have either an individual or a network of people that serve as their confidential sounding boards, available to provide unbiased insight into a particular problem or situation.” These men-
Trust That Your Toronto Referrals will be Treated Like Gold! I want your Toronto referrals. As a trusted advisor and a top real estate professional for 45 years, you can trust that I will treat your referral clients as one of my own. Full ser vice, OBEO tours, website, YouTube - all it takes to turn your referral into a sold. Here is the best part, my program gives you referrals for life!
Barry Lebow,
FRI, Master ASA, SRES, ABR, IFAS
Professional Land Economist, Arbitrator & Mediator Broker
RE/MAX Ultimate Realty Inc. Brokerage
Barry, Direct Lines:
Home Office 416-784-9806 Cell Phone: 416-399-2952 barry@barrylebow.com www.TransitionsGTA.com
Having a love affair with real estate since 1968!
tors have the ability to view your challenge with different filters and can often provide you a different perspective or even a different path. Many leaders work in isolation, but as John Donne said back in the 1600s, “No man is an island.” To operate as an island is to remove one’s self from the collective wisdom, which only makes you weaker – not stronger. In business, you meet many different personality types and quickly realize that many different agendas exist, often within the same company. Corporate politics, especially in dysfunctional organizations, can be massive consumers of time and resources. Great leaders must learn how to operate in highly political environments. The occurrence and intensity of politics tends to increase as you rise higher in an organization. To be effective in dealing with politics and the related organizational dynamics, you need to be a student of psychology. Incorrectly managing or dealing with a narcissist or an energy vampire can consume large quantities of your time, undermine your confidence and deplete your energy levels. The very best leaders understand different personality types and have strategies for effectively dealing with each type. As the saying goes, there is no “I” in team, but there are two in narcissist. A good leader understands the power of a successful team. A great leader assembles a great team around themselves, which is supported and enriched by their collective experience, knowledge, trust and loyalty of the group. Always hire the best and do not accept anything less than the best. Diversity of experience and the depth of the knowledge base of the team improve the capacity of the team for both innovation and creative thinking. The foundation of a successful team is based on trust. Without trust, the team will weaken and ultimately fail. Respect is another important attribute of great leaders. Not everyone will like you, especially if you have to make tough decisions, such as removing long-time employees to improve the bench
strength of your team. The respect leaders receive from their peers and from the community speaks volumes about their actions and whether people will chose to follow them. Respect must be earned and cannot be mandated. Without respect for the leader, cracks will form within the organization and retention will be an ongoing issue. Great leaders do not micromanage, they empower. Micromanagement results from lack of trust, personal control issues, per-
tional team.” As Richard Robbins, CEO of Richard Robbins International says, “Giving starts the receiving process.” Great leaders tend to give back to the community. Whether it is participating in a local charity, supporting community sports or sitting on a board for a charitable organization, great leaders always give back to the community. Being a successful leader requires life balance. The importance of work-life balance cannot
The very best leaders understand different personality types and have strategies for effectively dealing with each type. sonal insecurity or some other motive usually personally instigated. Micro-managers undermine confidence and kill the motivation of the people that have to suffer their wrath. Great leaders empower and allow their people to flourish and even fail sometimes, but the end result is almost always beneficial to the organization. The ability to motivate is paramount. Poor leaders tend to lack empathy or understand how their actions can be demotivating or destructive to the well-being of the organization and its people. The best leaders tend to be passionate and their passion is contagious to all those they encounter. Closely tied to passion is a positive attitude, a belief that you can accomplish anything if the intent is there. Brad Kenny, president of Imagemaker360, one of North America’s largest virtual tour and media companies said, “You have to enjoy what you do each day as your team members feed off their leader’s energy, actions and behaviours; a highly engaged leader will fuel and set free a highly motiva-
be understated. Make sure you build stress relief mechanisms into your routine such as regular exercise (cardio is a requirement, while weight training ensures that your body looks and feels as youthful as your mind tells you it is) and possibly meditation or yoga. The meditation or yoga is a great way to find inner balance and rejuvenate yourself, especially when an energy vampire enters your world or the job stress starts to accumulate. A leadership position can be rewarding both financially and personally. Leadership can be learned, but the journey involves continuous learning and development, constant self-evaluation, overcoming obstacles and consistently adapting to the changing world around you. Don Kottick, F.R.I., is the president and broker of record of Right At Home Realty, with six office locations and more than 2,300 salespeople and brokers. According to Real Trends, Right At Home Realty is ranked 7th in units and 8th in volume for all of Canada, and is Canada’s largest independently owned brokerage. REM
More than a leader in
Office Technology... Lone Wolf also offers services for brokers to grow their business!
Real Estate systems that fit together and work together for you!
Such as:
www.lwolf.com/marketing-and-technology-expert Get the MOST out of your ‘ONLINE PRESENCE’ and let our team of EXPERTS do the work FOR YOU! We’ll help you improve your SEO Enhance user experience and lead capture Deliver a showcase website to engage new visitors Provide detailed analytics and other services
www.lwolf.com/serviceWOLF Outsource program to SUPPORT and implement BROKERAGE OPERATIONS! gent Management – Virtual HR services for new agent hires A L isting Management – Managing all aspects of your listing business C ontract to Close – Managing the transaction from offer to the closing table, and distributing commissions T echnology Services – Branch accounting, web management, CRM and social media compliance
SINGLE POINT OF ENTRY FOR TODAY’S BROKERAGE! Lone Wolf’s Complete Enterprise Solution integrates the flow of listing, agent and transaction data from your back office, front office, web solutions and more.
www.lwolf.com/WOLFwatch Have the PEACE of mind that your ACCOUNTING data is ACCURATE with our EXPERT SERVICE TEAM! et us double check your books, assist and perform bank L reconciliations Be fully prepared for your year-end audit Know the financial status of your company Services available on a monthly or hourly basis
REM Ad June 2013.indd 1
Our Complete Enterprise Solution integrates your back office, front office, web solutions & more.
LEARN MORE TODAY! www.lwolf.com | 1.866.CRY.WOLF(279.9653) | sales@lwolf.com
FIT TOGETHER • WORK TOGETHER • GROW TOGETHER 2013-06-11 2:59 PM
34 REM JULY 2013
Good Works G
irls in the poorest regions of the world are more likely than boys to be malnourished and be denied access to education. Studies show that when a girl has enough to eat, a safe environment and an education, she’ll work to raise the standard of living for herself and her family, according to Plan International, a charity focused on third-world issues since 1937. Sutton Group - Central Realty in Toronto recently became a corporate sponsor for Plan Canada’s Because I am a Girl project. The office is committed to raising $5,000 for the charity by May 2014. Its first fundraiser is a unique calendar. It features professional photographs of broker/manager Richard Sloan and broker Chris Luxemburger. Each is posed with something pink against a black and white background. Calendars are available for $10 at both the Toronto and Brampton offices of the brokerage or by visiting www.maytomay.ca. ■ ■ ■
Royal LePage Realtors and staff from across Canada came together on Mother’s Day weekend to host more than 155 sales across the country at the 5th Annual National Garage Sale for Shelter. Proceeds from this year’s event enable the Royal LePage Shelter Foundation to fund 200 women’s shelters and help 30,000 women
and children to escape violence and abuse and to begin to rebuild their lives. Through the efforts of all the participating brokerages, and with the support of donors, sponsors and shoppers, the event raised more than $360,000. Since its inception in 2009, the National Garage Sale for Shelter has raised more than $1.6 million.
Royal LePage Estate Realty in Toronto raised more than $14,000 through multiple Garage Sale for Shelter locations. From left: Connie Sheppard, Ryan Gray, Tory Brown and Jessica Brown.
Volunteers at the garage sale from Royal LePage Regina Realty: Front, from left: Ashlee Drummond, Jessica Dunn, Megan Dunn. Back: Jennica George, Sean Malcolm, Melanie Malcolm, Tim Lipp, Jason Rumpel and Troy Gordon.
■ ■ ■
The annual Tracy Arnett Hike for Hospice event recently raised more than $70,000 for The Hospice at May Court in Ottawa. Tracy Arnett, broker of record of Tracy Arnett Realty in Ottawa is an active in-residence volunteer at the hospice and has been the main sponsor on the event for the last 11 years. The hike gives families and businesses in the area the opportunity to connect with the hospice. It allows those individuals who have been touched by its services to walk in memory of someone they loved and it helps to support the services provided to the 600 individuals the hospice serves annually.
Tracy Arnett
At the Royal LePage Burloak Real Estate Services cheque presentation to the Carpenter Hospice, front row, from left: Carm Bozzo, Rebecca Ryder, Angie Mackie, Rob Landry and JoAnn Jusdanis
■ ■ ■
Royal LePage Burloak Real Estate Services in Burlington, Ont. recently celebrated its year-round commitment to supporting Halton Women’s Place and the Carpenter Hospice with a donation of $40,000. The money was raised Broker/owner Stuart Muxlow of Royal LePage Wheeler Cheam Realty in Chilliwack, B.C. shows off one of the items for sale at his office’s Garage Sale for Shelter.
Right At Home representatives at the Habitat for Humanity build – front row, from left: Mariam Noori, Loretta Ng, Perla Lehava, Maria Whitfield and Julietta Stefanou. Second row: A Habitat for Humanity rep, Gian-Piero Furfaro, Fred Sedighi and Gennady Venderov.
Darlene King, cooking for a 2013 Cystic Fibrosis fundraiser. Spirit chairperson Mike DellaFortuna of Sutton Group Showcase Realty joined his colleagues, from left, Tamra Ford, Jen O’Gorman and Rabia Shafi at the Relay for Life.
REM JULY 2013 35
A breakfast auction hosted by Royal LePage Gale Real Estate and Royal LePage Team Realty raises $45,000. From left: Abby Browne, Hanna Browne, Kent Brown and John O’Neil.
with events such as an annual charity golf tournament, a Halloween Chili Bowl, Moose Treat Fridays in February and sales reps’ commission-based donations. “Every year, I become more and more amazed at the increasing dedication and support that our sales representatives, support staff and supplier partnerships devote to this task,” says JoAnn Jusdanis, broker/president. ■ ■ ■
Pictured with Greg Frewin (back centre) are, from left, Royal LePage Niagara Real Estate Centre agents Rose Iannocchino and Deb Vukelich with brokers Ryan Johnstone and Brad Johnstone, along with some appreciative children. Recently Realty Executives First Choice in Winnipeg challenged its Realtors to clean out their closets for a good cause. They collected 90 bags of clothing, weighing 1,541 pounds, for the Canadian Diabetes Clothesline Program.
Right At Home Realty recently participated in the Habitat for Humanity’s Adopt-A-Day program in Toronto. Habitat is building four semi-detached, fully accessible bungalows for low-income families. The homes will be built to the specifications of four families with children in wheelchairs. Taking part were Richmond Hill branch manager Gian-Piero Furfaro, along with brokers and sales representatives from his branch and some head office accounting staff members. An impact study conducted on Habitat Toronto Partner Families in 2012 revealed how affordable homeownership strengthens communities and opens doors for lowincome youth: • 76 per cent of homeowners report an improvement in children’s school grades. •81per cent report an improvement in children’s social lives. • 92 per cent of respondents say they will remain in their HFHT home for a very long time or can’t imagine ever moving. ■ ■ ■
Darlene King, a sales associate with Sutton Group - Results Realty in Regina, has served in executive positions on the United Way Board, Oilwives Club, School Community Council, Exhibition Association, the Kinette Clubs of Estevan and Regina and other charities. Recently she volunteered at the annual Don Narcisse All Star Gala, which benefits KidSport Saskatchewan. Guests had the chance to interact with celebrity athletes, enjoy a delicious meal and hear guest speaker Anthony Calvillo. The Help Portrait was another rewarding project for Darlene. “I was pleased to be the kitchen chairman for the Help Portrait Committee at the Albert Scott Community Centre. This is a fun time where hairdressers, photographers and others provide their services for people who may not have the opportunity to have family photos taken. We also served them lunch. I went back the next week to help cook and serve the Sharing Through Caring Christmas Dinner.” ■ ■ ■
Royal LePage Team Realty and Royal LePage Gale Real Estate in Ottawa hosted a fundraising auction for four local charities. In an annual event that began as a Denim Tuesday fundraiser for breast cancer, the breakfast auction has morphed over the years to support a number of charities. A total of $45,000 was raised this year, breaking all previous records, for Children’s Hospital of
Eastern Ontario; Ottawa Civic Hospital - Women’s Health Division, in support of breast cancer; Serge Giroux Dream Classic Golf Tournament, sending two terminally ill children to Disneyland; and Camp Trillium – a summer camp for children and their families who are dealing with cancer. ■ ■ ■
Recently 20 Realtors and staff from Sutton Group - ShowPlace Realty in Chilliwack, B.C. volunteered for Stuff the Truck, a one-day event that collected $18,000 worth of food for the local food bank. That same day, several of them participated in the 12-hour overnight Relay for Life and raised $1,000 for the Canadian Cancer Society. The next morning, they set up their Sutton tent and handed out refreshments at the MS Walk. “It was a busy weekend but everyone had fun,” says Kelly Johnston, one of the organizers along with his wife Nicole. “Our office can rally around a project quickly and lend our tents, time, efforts and excitement to make it work.” ■ ■ ■
Royal LePage Niagara Real Estate Centre recently hosted an evening with Greg Frewin, who is recognized as “The International Grand Champion of Magic.” With a portion of each ticket sold donated to the Royal LePage Shelter Foundation, the event raised more than $1,770 in support of Women’s Place of South Niagara. REM
36 REM JULY 2013
Work with home inspectors to get an edge By Dan Steward eal estate agents have a powerful ally that has gained popularity within the agent community in recent years. To maximize their success, agents should be aware of the many ways a home inspector can help improve the process for both buyers and sellers. According to recent statistics from the National Association of Realtors (NAR), real estate industry professionals consider home inspections invaluable. In fact, 99 per cent of the agents surveyed by NAR recommended a home inspection to homebuyers. Real estate agents should take control of the home inspection process and work with a professional inspector of their choice. Determining the asking price
R
of a home can quickly become a point of contention between agents and sellers if not handled carefully. Many sellers, especially those who are not in a hurry to sell their home, will push for an unrealistic price. Home inspection reports can help agents convince sellers to lower the price, as these reports are generated by an objective third party and based on facts. The report can also be leveraged as an unbiased third-party opinion when negotiating offers with buyers. Home inspection reports help prepare agents to expect the unexpected, by unveiling physical issues before the seller or potential buyers come across them. Reports alert agents to any safety issues, as well as providing a concrete resource for full disclosure protection from future legal claims. First impressions are crucial for listings, so repairs made prior to viewings by potential buyers can improve home showings. Using reports help agents to avoid scrambling to
obtain repair estimates or schedule repairs at the last minute. The level of marketing expertise applied by agents can make or break the sale of a home. Home inspection reports can act as a powerful marketing tool in several ways. Agents can offer online access to reports as a method to entice potential buyers to tour listings. Reports can also relieve any unfounded suspicions on the part of potential buyers once they have seen a listing in person, further boosting buyer confidence in the listing as well as client confidence in the agent. As the process moves forward, agents can continue to leverage home inspection reports for a number of different purposes. If there is already a home inspection report, buyers may waive their inspection contingencies. This can help agents and their sellers avoid the stress of a deal falling apart if a buyer’s inspection reveals unexpected physical issues. It can also eliminate the
feeling of buyer’s remorse that can follow an inspection issued by a buyer. A sound home inspection report can also prevent negotiations from occurring at the eleventh hour. A sound home inspection report benefits home buyers and their agents in a variety of ways as well. The cost of conducting a home inspection has already been covered by the seller, saving the buyer money. When a buyer waives their own home inspection because it has already been ordered by the seller, the buyer wins as well because their agent can position the decision as “sweetening” the deal without increasing the offering price. In addition, physical issues are acknowledged and usually corrected prior to the buyer making an offer on the home. A report may even give the buyer a better shot at acquiring an attractive financing deal. Aside from interaction between agents and their clients, home inspectors can act as counsel
for agents. Home inspectors who are good at what they do and share a passion with agents for the business will make themselves available to answer any questions or address any issues agents may have as the process unfolds. Much as agents advise their clients on purchasing or selling their home, home inspectors are there in part to educate agents on reports as well as physical issues that can arise that agents may not have taken into consideration. Working with a well-trained, professional home inspector truly gives agents an edge and offers them an industry partner. Dan Steward is president and CEO of Pillar To Post Professional Home Inspection. Founded in 1994, Pillar To Post is the largest home inspection company in North America with more than 400 franchisees in eight provinces and 47 U.S. states. The company expects to open 75 new locations by the end of 2013. www.pillartopost.com REM
Real estate game can be customized for Realtors new online real estate game can help Realtors differentiate themselves in their local market and encourage people to invest in real estate, says Lennard Feddersen, creator of Real Estate Empire DECK and owner of Rusty Axe Games in Terrace, B.C. “I grew up playing board games and in 2006 decided to make a more sophisticated version” of a popular board game, says Feddersen, who designs financial strategy games that teach people how to invest in real estate. His games, Real Estate Empire 1 (which is available online as well as at Staples and Walmart), Real Estate Empire 2 and Real Estate Empire – DECK, lets players buy, fix up and flip real estate. Feddersen, who has been making video games for 25 years, spent 18 years in Southern
A
California building games for large manufacturers and systems including Nintendo and PlayStation 2. Nine years ago, he went independent, deciding to make games that are smaller in scope and that sell through his website, www.RustyAxe.com. Feddersen’s latest version, Real Estate Empire – DECK is being offered to Realtors. First available as a board game, Real Estate – DECK is now online. Feddersen makes custom games for Realtors on a town-by-town basis. For $99 per year, North American Realtors can buy rights to their local area and name 32 streets on their custom online version of the game. They can also choose market conditions, such as depressed or lively, and can put a link on their site to direct visitors to their custom version.
Designed to offer a fixed and flipped sive rights to the local game, he realistic look at real real estate, and still says. Another benefit, he says, is estate investment, the owns several investthat once people play the game game includes forecloment properties. and get a taste of investing in real sure cards that allow estate, chances are that they’ll Feddersen says properties to be purcontact their Realtor for more his goal is to develchased for limited information. op games that are times at discount fun and simple to Lennard Feddersen can be prices. Bounty cards play. He wants playreached at 250-635-7623 entitle a player to a ers to have fun, between 9 and 5 PST or email free upgrade. When a to learn about lennard@rustyaxe.com. REM player owns a number Lennard Feddersen of properties in one area, the area gentrifies. Vandalism or drug dealer real estate cards can keep an area from geninvesting trifying. Luckily a jail card can and for be played so the drug dealer goes Realtors to to jail and the property can genbenefit. trify. Realtors can Feddersen’s interest in develgo to their oping Real Estate Empires – local papers DECK stemmed from his childwith the hood love of board games comstory about bined with his love of computers how they and real estate. He says he has have exclu- A card from Real Estate Empire – DECK.
REM JULY 2013 37
Email ad program helps clients, brokers G
iving is good. Giving someone something they need when they need it?
Genius. On moving day, 96 per cent of consumers order either pizza or Chinese food, says Lorne Wallace, CEO of Lone Wolf Real Estate Technologies. If a discount coupon from their real estate agent arrives by email the day before their move,
or the day of the move, how impressed will your buyers or sellers be? If they’re looking to do home improvements before they sell or after they buy, how great would it be to receive a coupon for a home improvement centre right before they head out to the store?
What’s
New Real Estate Channel partners with Juwai.com Real Estate Channel and the Chinese international property portal Juwai.com have formed a
Consumers love discounts on products and services that they are already planning to use, and they’re sure to love the agent who helps save them money, Wallace says. This is the idea behind the new Lone Wolf email ad program, movingWOLF. To have access to coupons and specials that they can pass along to their agents, brokers can sign up with the program for free. In turn, the agents can pass along the savings to their buyers and sellers, sending them out to coincide with each client’s transaction schedule. The program “shares relevant offers with consumers when they want it and need it,” Wallace says. “The program allows us to be one step ahead of the consumer and to tailor relevant offers to their unique stage of the moving process. Wrapping client service, communications and coupons around the transaction flow makes sense. It’s better than a closing gift.” Many companies are trying to get a piece of the real estate transaction pie, and many annoy home buyers and sellers in their pursuit of that business. Lone Wolf’s movingWOLF brings the objectives of brokers, agents, buyers and sellers together, and the bonus is partnership. The Real Estate Channel’s real estate agent customers will see their properties automatically listed on Juwai.com. The Real Estate Channel says the Chinese are the world’s fastestgrowing property buyer demographic. Chinese buyers spent US$28.7 billion on residential property around the world in 2011. It says in Montreal, 50 per cent of the market for luxury single-family homes consists of foreign buyers, primarily from China. In Vancouver, 40 per cent of such purchases are made by Chinese and other international buyers. In Toronto, 25 per cent of these purchases are made by Chinese and international buyers, the company says. “Real estate agents have been
that information is delivered by a trusted source, their local brokerage, says Wallace. Brokers generate revenue by participating in the program, agents can provide branded, directto-consumer email campaigns and buyers and sellers have relevant coupons and offers. Another plus is that WOLFmedia manages the program from start to finish. Although the Canadian version won’t roll out until the fall, now is the time for brokers to sign up, Wallace says. “Brokerages should be interested because the more brokerages we get on board, the more advertising we can bring in and the whole system grows upon itself.” Home improvement store Lowes is participating in the U.S. program, which is further along than its Canadian counterpart, he says. On both sides of the border, the goal is the same: to divert some advertising dollars that are going elsewhere and bring it back into the industry. Transactions are generating income for lots of other people, and Wallace says he’s trying to bring it back to benefit brokers and agents. For more information, call 1-866-CRY-WOLF (279-9653) or email marketing@lwolf.com
Royal LePage Optimum Christian Ouellette
Delson, QC
Mr. Christian Ouellette, owner of the brokerage formerly operating as Groupe immobilier Phénix, has joined the Royal LePage franchise network effective June 1, 2013. The company will operate as Royal LePage Optimum. Mr. Ouellette obtained his real estate broker’s license in 1990 and opened his own brokerage firm Groupe immobilier Phoenix in 2008. Over the past four years, he served as a municipal councilor in the city of Delson, providing him with considerable experience in city operations and regulations. Mr. Ouellette has served as a member of several boards, including president of his local business association and Chamber of Commerce. His professionalism and good humor will create a positive atmosphere for his team, who will now work in a newly refurbished and well-located office.
The Royal LePage Optimum team services the South Shore areas in the cities of Delson, St-Constant, Ste-Catherine, Candiac, Laprairie, St-Mathieu St-Philippe St-Rémi and St-Michel. Mr. Ouellette and his team can be reached at: Royal LePage Optimum 20 Blvd. Georges-Gagné South, Delson Tel: 450-635-8222 • Fax: 514-788-0601 optimum@royallepage.ca Congratulations to Christian and the team at Royal LePage Optimum. For information on the Royal LePage franchise program, please call: (416) 510-5827 or email: franchise@royallepage.ca
† †Royal LePage is a trademark used under license.
REM HOME DELIVERY
REM
asking us to make it easy for them to market to the Chinese buyers who are so active in Canada today,” says Leon Ng, founder of Vancouver-based The Real Estate Channel. “This partnership with Juwai.com enables us to significantly increase an agent’s chance of selling property more quickly and at a higher price.” Juwai.com co-rounder Simon Henry says: “One-third of Chinese millionaires have assets in Canada and other overseas countries. And, this pool of wealthy buyers will expand at a 20 per cent compound annual growth rate over the next three years.” For information: www. Juwai.com and www.realestatechannel.ca/ property portal. REM
Get REM at home! Call 416-425-3504 Ext. 4 or contact distribution@remonline.com and start receiving REM Home Delivery.
38 REM JULY 2013
THE PUBLISHER’S PAGE
By Heino Molls am not a Stephen Harper supporter. I am troubled by the way he seems to run things as prime minister. His controlling of Conservative party members in government seems wrong to me. His MPs must do as he says or face severe consequences such as being cut off from lucrative perks of office or being outright expelled from the party. The payment of money to Senator Mike Duffy seems to me to have been manipulated by Mr. Harper and yet he claims he knew nothing about it. As a resident of Toronto, I am troubled by the behaviour of Mayor Rob Ford and his refusal to answer questions fully regarding the scandals around him. It bothered me when he was identified as a bully at
MARKETPLACE
I
Your great treasure a Toronto Maple Leaf hockey game a few years ago. He berated the people sitting in front of him and acted in a threatening manner toward them. Then he claimed he was not at the game until proof was found that he was indeed there and acted in an inappropriate manner. It was only when he was caught that he apologized. It seems he will not admit to any wrong doing unless he is caught outright. What bothers me the most is that both of these men will still get a lot of support if they decide to run for re-election. They will tell voters that they are solely responsible for many positive things that happened in the country and the city during the time they were in office. They will ignore all the negative things that happened during the time they were in office. There will be many people who will vote for them. The fact that so many people will vote for them is not the worst of it for me. The worst of it all will be that almost half the people who have the right to vote will not do so. Therefore even if they agree with me that these people should
Franchise Territories
not be re-elected they will approve the conduct of those who are currently in office by not showing up to vote. The great irony of it all is that even though all of this makes me crazy, I must also acknowledge that this is also what is so wonderful about the country that I am privileged to live in: Canada. There are many people in the world today who cannot do what we do here. They cannot read, let alone write about how they do not like the leaders of their cities and their country. Even though I am writing to you today about how dumb half the people are in my city and my country because they don’t come out to vote, they have the right and they have the freedom to be that dumb. I will defend the right for them to be so dumb. How often have you heard how lucky we all are to live here? Yet if you look to your left and your right, you will probably see someone who does not bother to vote. They just accept that they have freedom handed to them without having to bother to come out and vote. I wish that when people voted,
AVAILABLE
We Provide:
t Training t Marketing
t Advertising t Lead Generation
for franchise information call:
or visit our website:
1-855-526-3939
housemaster.com
Canada’s largest Home Inspection company provides Peace of Mind to REALTORS® and Homeowners across the country. All our inspectors are Certified & Insured and are available 7 days a week! To find a home inspector near you go to
www.abuyerschoice.com Franchises available
they received some kind of card or sticker or something that acknowledged that they showed up. That way when we come upon people who complain about the way things are going, we can ask to see the sticker or card. If they don’t have it we can say, shut up! You don’t have the right to complain because you didn’t vote. Or by the same token we can say, okay, you voted, you have the right to complain. We can also point out that they have the freedom to complain without being forced to vote. We are not forced to do anything in this country. On this Canada Day, be happy
that you are not forced to come to the lawn on Parliament Hill in Ottawa to celebrate loudly, although I wish you would. Be happy that you will not be forced to sing the national anthem, although I wish you would. Remember how you have the freedom not to do these things. Somewhere, on July 1, please stop and even if it’s quietly to yourself, think about the great treasure you have. As an immigrant on November 25, 1953, I thank you Canada. Thank you for my freedom. Heino Molls is publisher of REM. Email heino@remonline.com. REM
Trade Shows and Conferences For complete listings, see www.remonline.com To add a listing to the calendar, email jim@remonline.com
We’ve got the strategy for your success. Genworth Canada makes homeownership easier by providing a complete suite of mortgage planning tools and homeownership education resources at Genworth.ca. The recently redesigned website is loaded with new features to help real estate professionals access and share information quickly. Find useful tools like home buying calculators, marketing programs and accredited training to help you grow your business.
Find out more at Genworth.ca
The HOMEOWNERSHIP Company Š 2013 Genworth MI Canada Inc.
Keep your CASH! OUR LEADS ARE FREE. Why pay for business you will get anyway? remax.ca generates thousands of referral free leads to RE/MAX agents every month.
remax.ca